Essay about The Impact of Fiscal Deficit on Economic Growth

Essay about The Impact of Fiscal Deficit on Economic Growth

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Objectives
The main objective of the study is to find out the impact of fiscal deficit on economic growth
Secondary objectives are:
- To find out the trend in Fiscal deficit and Economic growth
- To find out the relationship between Fiscal deficit and Economic growth.
- To find out the mean difference between the levels of Economic growth across the time period
- To find out the mean difference between the levels of Fiscal deficits across the time period

H1: There is a significant impact of Fiscal deficit on the Economic growth
H2: There is significant relationship between Fiscal deficit and Economic growth
H3: There is a significant mean difference between the levels of economic growth across the time periods
H4: There is a significant mean difference between the levels of fiscal deficit across the time periods

Methodology
Data collection
Secondary data which are collected from the Reserve bank of India reports of India have been utilized in this study. Further, textbooks, journals, magazines in the economic perspective were utilized for this study.
Sample
This study was conducted in India perspective, especially on the fiscal deficit and economic growth. Data on the fiscal deficit and economic growth from the year 1970 to 2010 were collected for the study purpose.
Data analysis method
Various statistical methods have been employed to compare the data. Descriptive statistics used to test the sample characteristics. Time series analysis was also carried out to identify the trends over the last forty years. Inferential statistics involves in drawing conclusions about a population based only on sample data. It includes regression analysis, Correlation analysis and independent sample one-way ANOVAs (f-test). Regression analysis is...


... middle of paper ...


...c growth is contributed by other factors significantly. A Durbin-Watson close to 2.0 is consistent with no serial correlation, while a number closer to 0 means there is, probably, serial correlation. In our study, DW has the value as 1.46 which is closer to 2.0. So that there is no serial correlation between the variables which have been used in this study. Hence the H2 is also
Rejected

Independent sample one–way ANOVA test.
One- way ANOVA test can be used to find out the significant mean different in levels of Economic growth and Fiscal deficits among time periods in the Sri Lankan economic perspective. Due to that, we have categorized thetime periods in the four segments as period between 1970-1979; period between 1980-1989 ; period between 1990-1999 ; period between 2000-2010 .

Time period Vs Economic Growth

Table no 05: Independent sample one –way Anova test

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