Role of Public Debt in Indian States in the Post-Reform Era

South Asia Economic Journal Pub Date : 2023-09-01 DOI:10.1177/13915614231193997

Subaran Roy, Anusree Paul

引用次数: 0

Abstract

The substantial amount of existing literature investigating the debt–growth association for high-income countries shows that debt has a negative impact on economic growth or the existence of an inverted U-shaped relationship between these two variables on some occasions. Given the lack of literature involving developing economies in this space, our study entirely focuses on a developing country like India. The study examines the empirical relationship between public debt (internal) and state gross domestic product (SGDP) for India in the post-reform era. The panel data extend from the year 2000 till 2020. Our random error component model findings indicate a positive and significant impact of debt in enhancing the Indian SGDPs for the above-mentioned period. Results are also confirmed by using an alternative estimation technique, namely, fixed effect. Next, we address the issue of endogeneity by employing generalized method of moments. Our results continue to remain robust. Finally, the inclusion of other control variables does not alter our findings. JEL Codes: H63, H54, O50, C51

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改革后印度各邦公共债务的作用

大量调查高收入国家债务增长关联的现有文献表明，债务对经济增长有负面影响，或者在某些情况下，这两个变量之间存在倒u型关系。鉴于在这一领域缺乏涉及发展中经济体的文献，我们的研究完全集中在像印度这样的发展中国家。本研究考察了后改革时代印度公共债务(内部)与国家国内生产总值(SGDP)之间的实证关系。面板数据从2000年一直延伸到2020年。我们的随机误差成分模型结果表明，在上述时期，债务对提高印度gdp具有积极而显著的影响。使用另一种估计技术，即固定效应，也证实了结果。接下来，我们采用广义矩法解决了内生性问题。我们的业绩继续保持强劲。最后，包括其他控制变量并没有改变我们的发现。JEL代码:H63, H54, O50, C51

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

South Asia Economic Journal Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.10

自引率

0.00%

发文量

期刊介绍： The South Asian nations have progressively liberalized their economies in recent years in an effort to integrate with the world economy. They have also taken steps to enhance multilateral and regional economic integration. Even though the South Asian economies have grown at an average rate of more than 5 per cent over the last few years, roughly 40 per cent of their people still live below the poverty line. Hence, the South Asian region continues to face many challenges of economic and social development. The South Asia Economic Journal (SAEJ) is designed as a forum for informed debate on these issues, which are of vital importance to the people of the region who comprise one-sixth of the world’s population. The peer-reviewed journal is devoted to economic analysis and policy options aimed at promoting cooperation among the countries comprising South Asia. It also discusses South Asia’s position on global economic issues, its relations with other regional groupings and its response to global developments. We also welcome contributions to inter-disciplinary analysis on South Asia. As a refereed journal, SAEJ carries articles by scholars, economic commentators,policy-makers and officials, from both the private and public sectors. Our aim is to create a vibrant research space to explore the multidimensional economic issues of concern to scholars working on South Asia. Among the issues debated in relation to South Asia are: - the implications of global economic trends; - the issues and challenges by WTO; - approaches to industrialization and development; - the role of regional institutions such as the SAARC; - the relationship between SAARC and other regional economic groupings such as ASEAN; - the implications of economic liberalization for trade and investment in the region; - new initiatives that can be launched to enhance economic cooperation among the South Asian countries both on a bilateral and a regional basis.