An Empirical Inquiry into Per Capita Convergence of Indian States

2019 ◽  
Vol 11 (3) ◽  
pp. 232-247
Author(s):  
Subaran Roy ◽  
Chitrakalpa Sen ◽  
Rohini Sanyal
Keyword(s):  
Capital Expenditure ◽  
State Level ◽  
Panel Unit Root Tests ◽  
Indian States ◽  
Growth Convergence ◽  
Empirical Inquiry ◽  
Policy Interventions ◽  
Development Expenditure ◽  
Per Capita ◽  
Active Policy

The topic of growth convergence (or the lack of it) has always been one of the most important economic phenomena for Indian states. This study undertakes more than 3 decades of data for Indian states from the 1980s and traces convergence of state-level per capita income; breaking the data down into the subperiods based on time and levels of income using panel unit root tests. The results show no discernible evidence of convergence across the states, especially after post-liberalization. However, taking into account control variables for capital expenditure, development expenditure, and fiscal deficit, we find significant evidence for convergence of state-level per capita GDP. This indicates that the nature of inequality across states is not structural in nature and can be reduced through active policy interventions.

Rethinking the effect of floods and financial development on economic growth

2019 ◽  
Vol 13 (3) ◽  
pp. 485-503 ◽  
Author(s):  
Yashobanta Parida ◽  
Devi Prasad Dash
Keyword(s):  
Financial Development ◽  
Capital Expenditure ◽  
State Level ◽  
Flood Management ◽  
Adverse Impact ◽  
Economic Losses ◽  
Indian States ◽  
Content Type ◽  
Long Run ◽  
Per Capita

Purpose The purpose of this paper is to evaluate the effect of floods and the role of financial development on per capita gross state domestic product (GSDP) growth, controlling for growth-enhancing factors across Indian states. Design/methodology/approach The paper uses the pooled mean group (PMG) method using state-level panel data for 19 Indian states over the period 1981-2011. Findings The PMG estimate shows that floods negatively affect the per capita GSDP growth in the long run. The results show that the mean of economic losses, the population affected and the area affected by floods increase by 10 per cent, leading to a decline in per capita GSDP growth by 0.0303, 0.0633 and 0.0232 per cent, respectively, in the long run. Furthermore, the population affected by floods exerts a higher adverse impact on the per capita GSDP growth compared to other flood measures. The results further show that states with better financial development experience a higher per capita GSDP growth, supported by additional capital expenditure, enrolment in higher education, better road infrastructure and higher urbanization. The crime rate is negatively correlated with per capita GSDP growth. Originality/value The results based on PMG estimates suggest that not only floods but also crime activities adversely affect the per capita GSDP growth across Indian states. Better financial market increases the per capita GSDP growth in the long run. This study not only contributes to empirical growth literature but also provides some useful policy suggestions. Moreover, the results lead to the conclusion that long-term flood management policies are essential to mitigate the adverse impact of floods on per capita GSDP growth across Indian states.

scholarly journals Capacity of reforms efficiency of administrative and territorial structure (the case of Zaporizhzhia region)

2019 ◽  
Keyword(s):  
Confidence Interval ◽  
Capital Expenditure ◽  
Personal Income ◽  
Financial Capacity ◽  
Income Per Capita ◽  
Self Sufficiency ◽  
Development Expenditure ◽  
Per Capita ◽  
Main Determinants ◽  
Capita Personal Income

The aim of the article is to examine efficiency of the decentralization process` potential and the conditions for the formation of financially capable and self-sufficient united territorial communities (UTCs) on the basis of sustainable development of territories and national economy alike. Main material. Efficiency of the decentralization process in Zaporizhzhia region has been analyzed in the article. The methodology of UTCs clustering by the level of their financial capacity applying statistical indicators of relative frequency and frequency with the subsequent determination of the confidence interval for mean observations (with probability of 0.95) has been proposed. The following have been chosen as the clustering criteria: income per capita; personal income per capita; infrastructure grant per capita and development expenditure (capital expenditure) per capita. Each set was divided into three groups: the first group of UTCs is from the minimum value to the lower limit of the confidence interval; the second group of UTCs is within the confidence interval; the third group of UTCs is above the upper limit of the confidence interval. It has been found out that the main determinants of UTCs formation of financial capacity and self-sufficiency are the following: natural-geographical (land, forest, water, mineral, biological, energy) and socio-economic (material, financial, human and intangible) resources. Econometric modeling of financial capacity level of UTCs in Zaporizhzhia region has been conducted. Conclusions and further research. The methodology of UTCs clustering by the level of their financial capacity according to the following criteria has been proposed: income per capita; personal income per capita; infrastructure grant per capita and development expenditure (capital expenditure) per capita. It has been used to evaluate efficiency of the decentralization process in Zaporizhzhia region. The main determinants of UTCs financial capacity and self-sufficiency formation has been proved. Regression econometric models have been built to evaluate its development potential and forecasting for UTCs of Zaporizhzhia region. The authors have proved that nowadays there are territories facing the process of UTCs formation. It has been demonstrated in the study that the complex potential of territorial development, namely, natural and socio-economic potentials, should be the basis for the further UTCs formation. The gradients (as the territorially defined set of opportunities) of the complex development potential will form UTCs administrative delimitation (territorial coverage). UTCs will have characteristics like economic capacity and efficient development based on the resources`, interests` and competitiveness` harmony. It has been proved that in the further process of decentralization it is advantageous to carry out UTCs clustering. UTCs should become clusters` centers of gravity (clusters` cores) as they have reached satisfactory financial capacity and selfsufficiency at the voluntary stage of decentralization.

scholarly journals Demographic Change and Private Savings in India

2021 ◽  
Author(s):  
Neha Jain ◽  
Srinivas Goli
Keyword(s):  
Gender Equity ◽  
State Level ◽  
Economic Life ◽  
Economic Policies ◽  
Multiple Sources ◽  
Indian States ◽  
Working Age ◽  
Private Savings ◽  
Per Capita ◽  
Working Age Population

India is on the edge of a demographic revolution with a rapidly rising working-age population. For the first time in this study, we investigate the role of the rising working-age population on per capita small savings in post offices and banks net of socio-economic characteristics using state-level panel data compiled from multiple sources for the period 2001-2018. Our comprehensive econometric assessment with multiple robustness checks provide three key findings: (1) Per capita private savings is increasing because of India’s growing working-age population, thus the ‘economic life cycle hypothesis’ is supported. (2) The demographic factors contribute around one-fourth of the per capita private savings inequality across Indian states. (3) The demographic window of economic opportunity for India can yield maximum benefits in terms of private savings when accompanied by favourable socio-economic policies on education, health, gender equity, and economic growth.

scholarly journals Does Political Competition Matter for Economic Performance? Evidence from Sub-National Data

2010 ◽  
Vol 58 (5) ◽  
pp. 1030-1048 ◽  
Author(s):  
Saibal Ghosh
Keyword(s):  
Economic Performance ◽  
Capita Income ◽  
Political Competition ◽  
State Level ◽  
Per Capita Income ◽  
National Data ◽  
Indian States ◽  
Career Concern ◽  
Per Capita ◽  
The Impact

The study utilises data on major Indian states for the period 1980–2004 to explore the impact of political competition on state-level income and fiscal variables. The findings suggest that an increase in political competition leads to an increase in state per capita income and growth. In terms of magnitude, a proportionate increase in political competition, measured in terms of vote margin, raises per capita income by roughly 0.001. Focusing on fiscal variables, the analysis indicates that tighter political competition increases economic expenditure. The evidence also appears consistent with the career concern hypothesis, which suggests that politicians increase developmental spending in order to improve their re-election prospects.

scholarly journals A Comprehensive Public Health Evaluation of Lockdown as a Non-pharmaceutical Intervention on COVID-19 Spread in India: National Trends Masking State Level Variations

2020 ◽  
Author(s):  
Deepankar Basu ◽  
Maxwell Salvatore ◽  
Debashree Ray ◽  
Mike Kleinsasser ◽  
Soumik Purkayastha ◽  
...  
Keyword(s):  
Public Health ◽  
Case Fatality ◽  
State Level ◽  
Indian States ◽  
Policy Interventions ◽  
Reproduction Numbers ◽  
Using Data ◽  
National Trends ◽  
Effective Public Health ◽  
Outbreak Case

ABSTRACTIntroductionIndia has been under four phases of a national lockdown from March 25 to May 31 in response to the COVID-19 pandemic. Unmasking the state-wise variation in the effect of the nationwide lockdown on the progression of the pandemic could inform dynamic policy interventions towards containment and mitigation.MethodsUsing data on confirmed COVID-19 cases across 20 states that accounted for more than 99% of the cumulative case counts in India till May 31, 2020, we illustrate the masking of state-level trends and highlight the variations across states by presenting evaluative evidence on some aspects of the COVID-19 outbreak: case-fatality rates, doubling times of cases, effective reproduction numbers, and the scale of testing.ResultsThe estimated effective reproduction number R for India was 3.36 (95% confidence interval (CI): [3.03, 3.71]) on March 24, whereas the average of estimates from May 25 - May 31 stands at 1.27 (95% CI: [1.26, 1.28]). Similarly, the estimated doubling time across India was at 3.56 days on March 24, and the past 7-day average for the same on May 31 is 14.37 days. The average daily number of tests have increased from 1,717 (March 19-25) to 131,772 (May 25-31) with an estimated testing shortfall of 4.58 million tests nationally by May 31. However, various states exhibit substantial departures from these national patterns.ConclusionsPatterns of change over lockdown periods indicate the lockdown has been effective in slowing the spread of the virus nationally. The COVID-19 outbreak in India displays large state-level variations and identifying these variations can help in both understanding the dynamics of the pandemic and formulating effective public health interventions. Our framework offers a holistic assessment of the pandemic across Indian states and union territories along with a set of interactive visualization tools that are daily updated at covind19.org.

scholarly journals The Challenge of Additionality: The Impact of Central Grants for Primary Healthcare on State-Level Spending on Primary Healthcare in India

2019 ◽  
Vol 8 (6) ◽  
pp. 329-336 ◽  
Author(s):  
Diana M. Bowser ◽  
Rajesh Jha ◽  
Manjiri Bhawalkar ◽  
Peter Berman
Keyword(s):  
Primary Healthcare ◽  
Healthcare Expenditure ◽  
State Level ◽  
The State ◽  
Healthcare Expenditures ◽  
Indian States ◽  
Per Capita ◽  
Eag States ◽  
The Impact ◽  
Central Level

Background: In planning for universal health coverage, many countries have been examining their fiscal decentralization policies with the goal of increasing efficiency and equity via "additionalities." The concept of "additionality," when the government of a lower administrative level increases the funding allocated to a particular issue when extra funds are present, is often used in these contexts. Although the definition of "additionality" can be used more broadly, for the purposes of this paper we focus narrowly on the additional allocation of primary healthcare expenditures. This paper explores this idea by examining the impact of central level primary healthcare expenditure, on individual state level contributions to primary healthcare expenditure within 16 Indian states between 2005 and 2013. Methods: In examining 5 main variables, we compared differences between government expenditures, contributions, and revenues for Empowered Action Group (EAG) states, and non-EAG states. EAG states are normally larger states that have weaker public health infrastructure and hence qualify for additional funding. Finally, using a model that captured the quantity of central level primary healthcare expenditure distributions to these states, we measured its impact on each state’s own contributions to primary healthcare spending. Results: Our results show that, at the state level, growth in per capita central level primary healthcare expenditure has increased by 110% from 2005-2013, while state’s own contributions to primary healthcare expenditure per capita increased by 32%. Further analyses show that a 1% change disbursement from the central level leads to a -0.132%, although not significant, change by states in their own expenditure. The effect for wealthier states is -0.151% and significant and for poorer states the effect is smaller at -0.096% and not significant. Conclusion: This analysis suggests that increases in central level primary healthcare expenditure to states have an inverse relationship with primary healthcare expenditures by the state level. Furthermore, this effect is more pronounced in wealthier Indian states. This finding has policy implications on India’s decision to increase block grants to states in place of targeted program expenditures.

Can increases in Twitter posts predict increases in cumulative incidence of COVID-19 in the United States? Evidence that social media can inform epidemic surveillance. (Preprint)

2020 ◽  
Author(s):  
Ruoyan Sun ◽  
Henna Budhwani
Keyword(s):  
Public Health ◽  
United States ◽  
Cumulative Incidence ◽  
Hot Spots ◽  
Adult Population ◽  
State Level ◽  
The United States ◽  
Education Attainment ◽  
Public Health Systems ◽  
Per Capita

BACKGROUND Though public health systems are responding rapidly to the COVID-19 pandemic, outcomes from publicly available, crowd-sourced big data may assist in helping to identify hot spots, prioritize equipment allocation and staffing, while also informing health policy related to “shelter in place” and social distancing recommendations. OBJECTIVE To assess if the rising state-level prevalence of COVID-19 related posts on Twitter (tweets) is predictive of state-level cumulative COVID-19 incidence after controlling for socio-economic characteristics. METHODS We identified extracted COVID-19 related tweets from January 21st to March 7th (2020) across all 50 states (N = 7,427,057). Tweets were combined with state-level characteristics and confirmed COVID-19 cases to determine the association between public commentary and cumulative incidence. RESULTS The cumulative incidence of COVID-19 cases varied significantly across states. Ratio of tweet increase (p=0.03), number of physicians per 1,000 population (p=0.01), education attainment (p=0.006), income per capita (p = 0.002), and percentage of adult population (p=0.003) were positively associated with cumulative incidence. Ratio of tweet increase was significantly associated with the logarithmic of cumulative incidence (p=0.06) with a coefficient of 0.26. CONCLUSIONS An increase in the prevalence of state-level tweets was predictive of an increase in COVID-19 diagnoses, providing evidence that Twitter can be a valuable surveillance tool for public health.

scholarly journals Decentralization and Its Impact on Growth in India

2021 ◽  
Vol 16 (1) ◽  
pp. 130-151
Author(s):  
Fernanda Andrade de Xavier ◽  
Aparna P. Lolayekar ◽  
Pranab Mukhopadhyay
Keyword(s):  
Economic Growth ◽  
Capita Income ◽  
Fixed Effects ◽  
Capital Expenditure ◽  
Per Capita Income ◽  
Reverse Causality ◽  
Social Expenditure ◽  
Causality Test ◽  
Per Capita ◽  
National Growth

We study the effect of revenue decentralization (RD) and expenditure decentralization (ED) on sub-national growth in India from 1981–1982 to 2015–2016 for 14 large (non-special-category) states. Our study provides evidence that both RD and ED play a defining role in India’s sub-national growth in this three-and-a-half-decade period. We use a panel data model with fixed effects (FE) and Driscoll and Kraay standard errors that control for heteroscedasticity, autocorrelation and cross-sectional dependence. To test for causality between growth and decentralization, we use the Granger non-causality test. The regression analysis is supplemented with the distribution dynamics approach. We find that: (a) While decentralization Granger-caused economic growth, the reverse causality effect of growth on decentralization was not significant; (b) Economic growth increased significantly after liberalization; (c) Decentralization, capital expenditure and social expenditure had significant positive impacts on economic growth; and (d) States that had high levels of decentralization also had high levels of per capita income, while states that had low decentralization also exhibited low per capita income.

Determinants of Corporate Cash Holdings

2017 ◽  
Vol 18 (2) ◽  
pp. 416-427 ◽  
Author(s):  
Yogesh Maheshwari ◽  
K.T. Vigneswara Rao
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Capital Expenditure ◽  
Cash Holdings ◽  
Working Capital ◽  
Financial Policies ◽  
Panel Data Regression ◽  
Strong Positive Relationship ◽  
Development Expenditure ◽  
Corporate Cash Holdings

This article aims at examining the financial determinants of corporate cash holdings. The study employs panel data regression method. It uses the fixed-effects method based on Hausman test results for the estimation of panel data model. This study has implications that are beneficial for the business managers to have a better understanding and appreciation of the role and importance of the determinants of corporate cash holdings in formulating and evaluating the corporate financial policies. The results of the study indicate a strong positive relationship between cash holdings and cash flow, dividend payment, market-to-book ratio, net debt issuance and net equity issuance of the sample firms. It is also found that the cash holdings of these firms are negatively affected by net working capital, leverage, research and development expenditure as well as capital expenditure of the firm. The article will help researchers as well as managers to understand as to what motivates the firms to hold cash, given the fact that despite being often termed as a non-earning asset, firms generally hold more cash than their normal working capital requirement.

Sign in / Sign up

Export Citation Format

Share Document