期刊
ECONOMIC MODELLING
卷 88, 期 -, 页码 151-162出版社
ELSEVIER
DOI: 10.1016/j.econmod.2019.09.015
关键词
Economic growth; Optimum government size; Panel threshold regression; Indian states
类别
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.
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