Keywords
Public Expenditure
Economic Growth
NorthEast India
How to Cite
Abstract
This study examines the impact of government expenditure on economic growth in the North Eastern Region of India, addressing whether government spending causes economic growth or vice versa. Using the Toda-Yamamoto causality approach, the analysis reveals that the Wagner hypothesis holds in one state, while the neutrality hypothesis is supported in the other states. These findings suggest that policymakers should consider not only the amount of government spending but also the efficiency of public expenditure when formulating fiscal policies.
References
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