The role of education expenditure in pro-poor growth

This paper makes an attempt to develop a framework to look at the relationship between educational expenditure at the state level and poverty reduction which allows us to examine how a rise in educational expenditure has affected the pattern of poverty reduction across Indian states stimulating non-firm sector. This paper makes its base on the Martin Ravallion and Gaurav Datt, (2001) study on the causes of economic growth been more pro-poor in some states of India than others. Earlier study considered the time frame till 1994. We extended that study till 2003–04 to analysis whether their conclusion of pro-poor growth still continued in era of emerging India.