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A STUDY ON THE ASSOCIATION BETWEEN PUBLIC EXPENDITURE AND ECONOMIC GROWTH IN ODISHA DURING 1980-2018


Ranjan Kumar Panda
,
Abstract

An attempt has been made in this write-up to examine the linkage between aggregate public spending and growth of the economy in Odisha during the study period 1980-2018. Time series technique has been employed towards this end. It is observed that both the series are non-stationary at level but becomes stationary after first difference. From the estimated cointegrating equation, it is found that there exists a long run relationship between Aggregate Expenditure and Gross State Domestic Product. The Granger Causality Test, which exposes the short-term relationship between any two variables, reveals that causality runs from Aggregate Expenditure to Gross State Domestic Product.

JEL Classification: C32, H72, O15

KEY WORDS: Aggregate Expenditure, Time Series Analysis, Granger Causality

Keywords:
Journal Name :
EPRA International Journal of Economic and Business Review(JEBR)

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Published on :

Vol : 7
Issue : 7
Month : July
Year : 2019
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