Understanding Economic Growth in Indian States

NR, Bhanumurthy (2009): Understanding Economic Growth in Indian States.

Abstract

The present study tries to understand the trends and determinants of economic growth in Indian states. For this, it considers two important determinants such as infrastructure and financial development. With the help of panel time series models, the study concludes that although both the variables are highly correlated with economic growth, it is the social sector development that is having higher impact on the economic growth. In terms of the role of financial sector, the results show that although it is necessary to have development in terms of increase in number of bank branches, it is the extent of bank business that is more important in the growth process.

• Item Type: MPRA Paper
• Language: English
• Keywords: Growth, Infrastructure, Financial Development, Panel Time Series, India
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock; N - Economic History > N2 - Financial Markets and Institutions > N20 - General, International, or Comparative; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies

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