Open AccessSocial Sector Expenditure and Gross State Domestic Product in Assam
Author(s) -
M. Hazarika
Publication year - 2020
Publication title -
international journal of recent technology and engineering
Language(s) - English
Resource type - Journals
ISSN - 2277-3878
DOI - 10.35940/ijrte.f9958.038620
Subject(s) - gross domestic product , granger causality , cointegration , economics , product (mathematics) , lakh , johansen test , gross domestic income , development economics , economic growth , error correction model , public economics , econometrics , geography , mathematics , gross income , geometry , archaeology , state income tax , tax reform , agriculture
Spending on social sector benefits the society enhances the human capital of the economy, which have both direct and indirect spill over effects on economy. Social sector expenditure includes expenditure on health, education etc. The objective of the study is to analyse the trend of Social Sector Expenditure and Gross State Domestic Product of Assam and to analyse the relationship between Social Sector Expenditure and Gross State Domestic Product of Assam. The trend of Gross State Domestic Product of Assam at constant 2011-12 prices (in rupees lakh) is showing a decreasing trend from 1990-91. But after 2015-16, it is showing an increasing trend. The expenditure on social sectors like health, education etc as a whole and Gross State Domestic Product of Assam is showing an increasing trend from 1990-91 to 2016-17. By using cointegration and Granger Causality test an attempt has been made to analyse the relationship between the expenditure on Social Sectors on Gross State Domestic Product in Assam. Granger Causality test reveals that expenditure on Social Sectors has a positive impact on Gross State Domestic Product. But Johansen Cointegration test reveals that there is no integration between the two variables in the long run.