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Optimum government size and economic growth in case of Indian states: Evidence from panel threshold model
Published in Elsevier B.V.
2020
Volume: 88
   
Pages: 151 - 162
Abstract
This paper investigates the relationship between optimum government size and economic growth using data of Indian states during 1990-91 to 2017–18. Our results derived from panel threshold regression model show a positive and significant impact of government size on economic growth within the estimated thresholds for both aggregate and sub-panels based on income and regions. Once the government size moves above the upper threshold level, then its impact declines and turns to be insignificant. Thus, our findings suggest the policymakers for maintaining the government size within the thresholds limit. © 2019 Elsevier B.V.
About the journal
JournalData powered by TypesetEconomic Modelling
PublisherData powered by TypesetElsevier B.V.
ISSN02649993