Dynamic panel estimation of expenditure composition and its impact on per capita GSDP growth of NSC states

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ਪ੍ਰਕਾਸ਼ਿਤ ਤਾਰੀਖ ਅਪ੍ਰੈਲ 07, 2016

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Annex 1: Dynamic panel estimation of expenditure composition and its impact on per capita GSDP growth of NSC states
	Model 1	Model 2	Model 3	Model 4
GFD/GSDP	-1.05*	-1.36*	-1.49*	-1.19*
	(0.00)	(0.00)	(0.00)	(0.00)
Debt/GSDP lagged	0.67***	0.79**	1.01*	1.31*
	(0.06)	(0.02)	(0.00)	(0.00)
(Debt/GSDP)² lagged	-0.01***	-0.01**	-0.01**	-0.01**
	(0.08)	(0.02)	(0.03)	(0.01)
Capital Outlay / Total Expenditure	0.48*
	(0.00)
Revenue Expenditure / Total Expenditure		-0.54*
		(0.00)
Development Expenditure / Total Expenditure			0.55*
			(0.00)
Non-development Expenditure / Total Expenditure				-0.66*
				(0.00)
Constant	0.13	51.99*	-37.65*	13.89**
	(0.98)	(0.00)	(0.00)	(0.04)
Number of observations	187	187	187	187
Arellano-Bond test@
AR(1)	-3.04	-2.42	-2.51	-2.74
	(0.00)	(0.02)	(0.01)	(0.01)
AR(2)	-1.42	-1.54	-1.71	-1.32
	(0.15)	(0.12)	(0.09)	(0.19)
,, and ** indicate significance at 1%, 5% and 10% levels, respectively; Figures in parenthesis show the p-value. @:Arellano-Bond test (1991) for AR(1) and AR(2) in first difference with p-value in parenthesis. The overall validity of instruments in each of the equations are checked using the Sargan test of over-identifying restrictions.