An Emprical Analysis of the Impact of Public Expenditure on Education and Health on Poverty in Indian States

IGIDR Working Paper

30 Pages Posted: 15 Aug 2000

See all articles by Raghbendra Jha

Raghbendra Jha

Australian National University (ANU) - Australia South Asia Research Centre (ASARC); Crawford School of Public Policy

Urvashi D. Biswal

Queen's University - Department of Economics

Bagala P. Biswal

Memorial University of Newfoundland (MNU)

Date Written: July 2000

Abstract

The principal objective of this paper is to test whether public expenditures on education, health and development activities have been effective in reducing poverty in India. For sensitivity and robustness of the results, three different measures of poverty belonging to the Foster-Greer-Thorbecke group of poverty measures are used. We use various types of education expenditures, viz., government expenditures on elementary, secondary, higher/university and "other" levels. The data for fourteen Indian states from the 13th. to the 53rd rounds of the National Sample Survey of India are used for estimating poverty. Using unbalanced panel techniques, the study tests Fixed Effects, Randome Effects and OLS models, and concludes that education, health and development expenditures help reduce poverty. In particular, expenditure on higher, university, technical, adult and vocational educations as oposed to elementary and secondary education is more effecetive in poverty reduction. Several policy conclusions are also advanced. Data

Keywords: India, Poverty Indices, Public Expenditures on Education and Health, Fixed and Random Effects Models, Panel

JEL Classification: H51, H52, H53, O15, O53

Suggested Citation

Jha, Raghbendra and Biswal, Urvashi D. and Biswal, Bagala P., An Emprical Analysis of the Impact of Public Expenditure on Education and Health on Poverty in Indian States (July 2000). IGIDR Working Paper. Available at SSRN: https://ssrn.com/abstract=236888 or http://dx.doi.org/10.2139/ssrn.236888

Raghbendra Jha (Contact Author)

Australian National University (ANU) - Australia South Asia Research Centre (ASARC) ( email )

Canberra, Australian Capital Territory 0200
Australia
+61 2 6125 2683 (Phone)
+61 2 6125 0443 (Fax)

HOME PAGE: http://crawford.anu.edu.au/crawford_people/content/staff/acde/rjha.php

Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Urvashi D. Biswal

Queen's University - Department of Economics ( email )

99 University Avenue
Kingston K7L 3N6, Ontario
Canada K7L 3N6

Bagala P. Biswal

Memorial University of Newfoundland (MNU)

Department of Economics
St. John's, Newfoundland A1B 3X5
Canada

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