Promoting Economic Cooperation in South Asia: Beyond SAFTA examines the distinct development dichotomy that exists in South Asia and tries to find a workable solution to bridge this gap. In spite of rapid economic growth since 1980, there is extensive poverty and inequality in South Asia.
Using panel data from 14 Indian states between 1990 and 2002, this paper empirically examines how the share of government spending on public goods such as health, education and basic infrastructure affects per capita gross domestic product growth and poverty reduction at the state level.
