Investigating the relationship of government revenue and expenditure on economic growth using a generalized method of moments: Does state-level panel ensure sustainable growth?

Autor: Sumandeep; School of Humanities & Social Sciences, Thapar Institute of Engineering and Technology Deemed to be University, Patiala, India., Kiran R; School of Humanities & Social Sciences, Thapar Institute of Engineering and Technology Deemed to be University, Patiala, India., Sharma RK; School of Humanities & Social Sciences, Thapar Institute of Engineering and Technology Deemed to be University, Patiala, India.
Jazyk: angličtina
Zdroj: PloS one [PLoS One] 2024 May 10; Vol. 19 (5), pp. e0301764. Date of Electronic Publication: 2024 May 10 (Print Publication: 2024).
DOI: 10.1371/journal.pone.0301764
Abstrakt: The current research project investigates the correlation between economic growth, government spending, and public revenue in seventeen Indian states spanning the years 1990 to 2020. An analysis of the relationship between key fiscal policy variables and economic growth was conducted utilising a panel data approach, the Generalised Method of Moments (GMM), and fully modified Ordinary Least Squares (FMOLS & DOLS) estimation. In our investigation, we assessed the impacts of non-tax revenue, development plan expenditure, tax revenue, and development non-plan expenditure on (i) the net state domestic product (NSDP) and (ii) the NSDP per capita. The findings indicate that the selected fiscal variables are significantly related. The results indicate that expeditious expansion of the fiscal sector is obligatory to stimulate economic growth in India and advance the actual development of the economies of these states.
Competing Interests: The authors declare no competing interest.
(Copyright: © 2024 Sumandeep et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.)
Databáze: MEDLINE
Externí odkaz:
Nepřihlášeným uživatelům se plný text nezobrazuje