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Economic and political determinants of social sector expenditures: evidence from Indian states

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  • Chandralekha Paike
  • Rama Pal

Abstract

Political parties aim at getting re-elected and their actions are often in conflict with the economic and welfare objectives of the government. In this context, the paper endeavours to study the economic and political determinants of social sector spending in India and understand their relative importance. For this state-level panel analysis from 2001 to 2013, the states are classified into less developed and developed states. The findings show that both economic and political factors determine the social sector expenditure; however, the Shapley decomposition analysis indicates that the relative contribution of economic factors is much higher as compared to political variables.

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  • Chandralekha Paike & Rama Pal, 2020. "Economic and political determinants of social sector expenditures: evidence from Indian states," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 13(2), pages 188-204, May.
    • Handle: RePEc:taf:macfem:v:13:y:2020:i:2:p:188-204
    DOI: 10.1080/17520843.2020.1727546
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    Cited by:

    1. Zabsonre Zacharia & Mouhamadou Dial, 2023. "Factors explaining public expenditure in WAEMU countries [Les facteurs explicatifs des dépenses publiques dans les pays de l’UEMOA]," Post-Print hal-04125068, HAL.

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