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This study examines the relationship between fiscal decentralization and economic growth in the case of India using panel data for 14 nonspecialized states for the period 1981-2014. The results revealed from panel cointegration, and dynamic ordinary least squares (DOLS) framework indicate that spending decentralization has a positive and significant impact on the state domestic product. On the other hand, revenue decentralization has a negative and significant effect on state domestic product. The overall measure of fiscal decentralization is found positively associated with the state income. This study is consistent with the divergence hypothesis in opposite to convergence hypothesis of Oates (1972).

This study explores the relationship between public expenditure (PE) and gross domestic product (GDP) to verify whether the Wagner’s hypothesis holds good in the Indian context. We cover the period from 1970 to 2013 and use econometric tools like Autoregressive Distributed Lag Model (ARDL) test to check the long-run and causal relationship among the variables. The results of the bounds test suggest that there exists cointegration between PE and GDP, but we found weak evidence for Wagner’s hypothesis as well.

This study aims to investigate the validity of the pollution haven hypothesis for the global panel consisting of 29 countries (Philippines, Singapore, Thailand and Vietnam are taken as the sample of this study) with energy consumption, economic growth and trade openness as additional determinants of environmental degradation over the period 1994-2014. To make the panel data analysis more homogenous, we also investigate the validity of the PHH for a number of sub-panels. These sub-panels are constructed based on the sub-regions of Asia. In this way, we end up with six Asian panels; namely, Global panel, West Asia, Central Asia, East Asia, South Asia and Southeast Asian panels. Based on the IPS and ADF chi-square unit root test and Pedroni cointegration test results, all variables were found to be first difference stationary and cointegrated. On applying FMOLS, the long-run results suggest the presence of the pollution haven hypothesis only in East Asian panel. In turn, foreign direct investment reduces environmental degradation, thus rejecting the validity of the pollution haven hypothesis (PHH) in the Southeast Asian panel which is found to be negatively linked to CO 2 emissions. Moreover, energy consumption seems to be the main determinant of carbon emissions and GDP growth has a positive impact on it in all panels except West Asia. Lastly, East Asian countries have followed the Kyoto protocol in order to reduce their emissions level.

The aim of this study is to explore the dynamic linkage between energy efficiency and total factor productivity (TFP) using carbon emission and trade openness as control variables for the period of 1971–2013. For this purpose, vector error correction mechanism (VECM) is employed to determine the direction of causality. A popular and simple measure of energy efficiency, GDP per unit of energy use and trade as a percentage of GDP are used for the proxy of trade openness. The result shows negative impact of energy efficiency on TFP, in other way energy intensity has a positive impact on the growth of TFP. Hence, the negative sign indicates a trade‐off between energy efficiency and TFP. There is a unidirectional causality running from energy efficiency to TFP. Whenever energy intensity increases, the TFP level increases as well. So, in the long run, a higher TFP implies higher energy consumption. Further, TFP and carbon emission Granger cause trade openness, and there is unidirectional causality from TFP to CO2 emission.

The present article aims to explore the causal link between total factor productivity (TFP) and openness in the Indian economy during the period 1970–2011. The study employs the cointegration and error-correction approach, along with Granger causality test. The TFP index used in the study is based on the Tornqvist index and export plus import as a percentage of GDP is used as a measure of openness. It is found that trade openness is cointegrated with TFP using the autoregressive distributed lag (ARDL) method. In the short run, there is evidence of unidirectional Granger causality running from trade openness to total factor productivity. The finding suggests that heavy protection for the domestic industry would deprive the country of efficiency gains in the long run. The resultant effect would be the wastage of resources. For a developing country, lower efficiency levels will halt the process of development. However, enhancement of TFP can not only be due to increase in trade, along with it, the investment in human and physical capital are also better avenues to be taken care of. JEL Codes: F10 O40 O33 C22

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