Year: 2018 | Month: December | Volume 7 | Issue 4
Composition of Public Expenditure and Economic Growth in India: A Time Series Analysis
Abstract:
The purpose of the study is to analyze the dynamic link between government spending and economic growth for Indian Economy with the use of 44 years time series data and techniques. The empirical analysis of the study indicates the absence of short run causality between the variable in all the six models. The results showed that there is long run causality between Gross domestic product and Revenue expenditure in total as well as per capita term from GDP to Revenue expenditure. The study also found the Bi-directional causality from per capita total government expenditure and per capita Gross Domestic Product.
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