The economic growth rate of West Bengal has significantly declined post-2011 and has remained lower than the nation as a whole and significantly below other major Indian states.
Authors
Debajit Jha, Professor, Jindal School of Government and Public Policy, O.P. Jindal Global University, Sonipat, India
Jagadish Prasad Sahu, The Indian Institute of Management, Kashipur, India
Parinita Singh, Jindal School of Government and Public Policy, O.P. Jindal Global University, Sonipat, Haryana, India
Summary
A political economy explanation of the growth trend post-2011 in West Bengal is provided based on a framework to understand the impact of corruption on economic growth. The difference-in-difference analysis shows that the economic growth rate of WB has significantly declined post-2011, and has remained lower than the nation as a whole and significantly below other major Indian states. Although corruption in the farm sector has contributed to the increase in the growth rate of the sector (in the short run), a massive negative impact of corruption operating in the non-farm sector of the economy has overshadowed the positive impact on the farm sector.
Published in: Economic and Political Weekly
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