Economics, Econometrics and Finance
8 years ago

Government spending drives economic growth in India, study confirms.

IOSR Journal of Humanities and Social Science
An Empirical Investigation of the Causality between Government Expenditure and Economic Growth in India during 1974-2010
Karabee Medhi

Paper Summary

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Government spending in India from 1974 to 2010 was studied to see how it affects economic growth. The researchers found that there is a long-term relationship between government spending and GDP growth in India. They also discovered that government spending causes economic growth in India, supporting Wagner's law.