The study covering the states of India for the period 2005 up to 2020 examines the growth effect of fiscal impulse on sectoral output. Gross value added of sectors is taken as the dependent variable while fiscal impulse as a ratio of the state domestic product has been taken as the explanatory variable. Four control variables are additional included. The study employs the generalized method of moments (GMM) for estimation. For industry and the services sector, growth effect of fiscal impulse is found to be positive and significant while for agriculture sector the effect is not significant. A sample split of states reveal developed states to be benefitting more from the growth effect of fiscal impulse as compared to the lesser developed states. The study contributes to the literature on fiscal policy and growth among the states of India.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.