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Government Spending, Trade Openness and Economic Growth in India: A Time Series Analysis

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  • Hrushikesh Mallick

Abstract

The study examines the impact of aggregate government expenditure and its two broader components such as revenue expenditure and capital expenditure on the growth rate of output in the Indian context along with other key potential determinants of economic growth such as trade openness and private investment. It utilizes structural vector autoregression (SVAR) methodology for examining the dynamic response of output growth to the shocks in major macro economic variables wherein public expenditure is considered to be an important fiscal policy instrument. [WP No. 403].

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  • Hrushikesh Mallick, 2008. "Government Spending, Trade Openness and Economic Growth in India: A Time Series Analysis," Working Papers id:1809, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:1809
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    Cited by:

    1. Ahmad Bhat Aijaz & Iqbal Khan Javaid & Ahmad Bhat Sajad & Ahmad Parray Waseem, 2023. "Central Bank Independence and its Impact on Fiscal Deficit: Evidence from India," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(2), pages 71-94, June.
    2. Kolawole Opeyemi Olawole, Temidayo Oyeyemi Adebayo, Opeoluwa Samuel Idowu, 2018. "Openness, Government Size and Economic Growth in Nigeria," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(1), pages 71-84, March.
    3. Monojit Chatterji & Sushil Mohan & Sayantan Ghosh Dastidar, 2014. "Relationship Between Trade Openness And Economic Growth Of India: A Time Series Analysis," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 6(1 (March)), pages 45-69.
    4. Vinoj Abraham, 2008. "Employment growth in rural India: Distress driven?," Centre for Development Studies, Trivendrum Working Papers 404, Centre for Development Studies, Trivendrum, India.
    5. Shikha Gupta & Nand Kumar, 2022. "Globalization Versus Slowbalization: A Perspective on the Indian Economy," Journal of South Asian Development, , vol. 17(1), pages 84-107, April.
    6. Ahmed Mohamed Ezzat, 2018. "Trade Openness: An Effective tool for Poverty Alleviation or an Instrument for Increasing Poverty Severity?," Working Papers 1248, Economic Research Forum, revised 07 Nov 2018.
    7. Ashima Arora & Anjala Kalsie, 2018. "Impact of US Financial Crisis on GDP of BRICS Economies: An Analysis Using Panel Data Approach," Global Business Review, International Management Institute, vol. 19(2), pages 439-454, April.

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    More about this item

    Keywords

    public; output; growth; time series; analysis; india; government; expenditure; revenue; capital; private investment; economic growth; structural vextor; autoregression; SVAR; macro economic variables; fiscal policy; expenditure;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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