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Governance in Indian States: An Inter and Intra State Analysis

Author

Listed:
  • Nausheen SODHI

    (Panjab University Panjab University, Department of Economics, Chandigarh, India)

  • Upinder SAWHNEY

    (Panjab University Panjab University, Department of Economics, Sector-14, Chandigarh, India)

Abstract
Good governance structures can enhance policy making, but the outcomes of such policies differ at the state level as compared to the national level. While there are abundant international and nation level studies on governance, there are few studies on sub-national analysis. Numerous comprehensive indices of governance exist in the literature, but the need to harmonize conceptualization and operationalisation of governance remains. This paper takes principles of good governance categorized into sub-dimensions comprising 75 variables to construct governance index for three Indian states for the time period from 2002 to 2016. The three states i.e. Haryana, Andhra Pradesh and Bihar are selected to represent high, middle and low per capita Gross State Domestic Product (GSDP) respectively and an inter-state and intra-state analysis of their governance performance is done using one-way Analysis of Variance (ANOVA) and Tukey and Games-Howell post-hoc tests for pair-wise comparisons. Results show that governance performance of Andhra Pradesh exceeds that of high GSDP state Haryana, while that of least GSDP state Bihar is the worst. This suggests a stronger link between poor governance and low GSDP compared to good governance and high economic growth. Policies for improving governance and economic growth for low growth states should follow a comprehensive and unified approach, while for high growth states, policies to improve governance should follow a targeted approach towards separate governance parameters.

Suggested Citation

  • Nausheen SODHI & Upinder SAWHNEY, 2023. "Governance in Indian States: An Inter and Intra State Analysis," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 61-86, January.
    • Handle: RePEc:ist:iujepr:v:10:y:2023:i:1:p:61-86
    DOI: 10.26650/JEPR1109691
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    References listed on IDEAS

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    1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    2. Roumeen Islam, 2006. "Does More Transparency Go Along With Better Governance?," Economics and Politics, Wiley Blackwell, vol. 18(2), pages 121-167, July.
    3. Graeme D. Ruxton & Guy Beauchamp, 2008. "Time for some a priori thinking about post hoc testing," Behavioral Ecology, International Society for Behavioral Ecology, vol. 19(3), pages 690-693.
    4. Raghabendra Chattopadhyay & Esther Duflo, 2004. "Women as Policy Makers: Evidence from a Randomized Policy Experiment in India," Econometrica, Econometric Society, vol. 72(5), pages 1409-1443, September.
    5. Cicatiello, Lorenzo & De Simone, Elina & Ercolano, Salvatore & Gaeta, Giuseppe Lucio, 2021. "Assessing the impact of fiscal transparency on FDI inflows," Socio-Economic Planning Sciences, Elsevier, vol. 73(C).
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    More about this item

    Keywords

    Governance Index; Economic growth; ANOVA; Service delivery; Sub-national JEL Classification : H11 ; H70 ; O43;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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