ECONOMIC GROWTH AND PUBLIC POLICY: AN EMPIRICAL STUDY ON TRIPURA, INDIA
Economic development requires stable political environment with a high quality of good governance. Good governance mostly depends on effective implementation of various public policies of the concerned governments. On the other hand, economic growth is one of the necessary conditions of economic development. One of the prime objectives of economic development is to achieve social welfare through efficient implementation of government policies. Therefore, governance is one of the important tools to materialise these social welfare as well as basic needs of the citizen in connection with road construction, health, education and electrification according to Human Development approach.
In this connection the study examines whether public policies in different sections of the government at state level have played an important role in improving economic growth in Tripura. The study emphasises on time series data of gross state domestic product (GSDP) growth rate as a proxy variable of economic growth and public policy comprising of public expenditures on road, health, education and electricity as well as physical infrastructure like road length, health centres, schools, electricity consumers and number of police stations on public policies. The study suggests that there is positive correlation between economic growth and public policies taken by the government of Tripura.
KEYWORDS: Good governance, public policies, social welfare, economic growth