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Social Sector Development and Economic Growth in India, 1990-1991 to 2017-2018

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  • P.K. Mishra (b), S.K. Mishra (b) and M.K. Sarangi (b)

    ((a) Central University of Punjab, India, (b) Siksha ‘O’ Anusandhan (Deemed to be University), India)

Abstract

This paper studies the impact of the development of social sector on the long-run economic growth in the Indian states during 1990-1991 to 2017-2018. It is observed that different States in India are not only spending unequally on social sector activities, but also are giving unequal importance to different components constituting the social sector. This has widened a disparity in the level of social sector development which might have led to an inequality in the human resource development and consequential disproportionate economic growth across the Indian States. The findings of this study have predicted a convergence in the social sector development across the Indian States. In this perspective, the findings of long-run analysis support the existence of an equilibrium relationship between social sector development and economic growth in the country. In addition, public expenditure on the sub-sectors such as family welfare and medical and public health, housing and urban development, water supply and sanitation, and social security and welfare have been found to exert a positive impact on the economic growth of Indian states in the long-run. The findings are critical for the policy circle designing programmes and schemes for the development of social sector to ensure inclusive growth.

Suggested Citation

  • P.K. Mishra (b), S.K. Mishra (b) and M.K. Sarangi (b), 2020. "Social Sector Development and Economic Growth in India, 1990-1991 to 2017-2018," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(4), pages 49-68, December.
    • Handle: RePEc:jed:journl:v:45:y:2020:i:4:p:49-68
    DOI: 10.35866/caujed.2020.45.4.003
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    More about this item

    Keywords

    Public Spending; Social Sector; Economic Growth; India;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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