Abstract:
Purpose – The COVID-19 pandemic educed extraordinary policy responses globally, including in India, to
flatten the infection-growth curve. The trajectories of infections, recovery, and deaths vastly differed across
Indian states. The purpose of this study is to investigate whether persistent investments by states in critical
social sectors, such as health and education, explain their preparedness and hence better management of the
pandemic.
Design/methodology/approach – This study uses secondary data on the number of infected, recovered
and deceased due to COVID-19, along with data on population and income across 302 districts in 11 major
states in India. Data on health and education indices are collected at the state-level. Linear regression models
that also control for heteroskedasticity are applied.
Findings – This study finds that higher investments in health care and education reduce the propensity of
the infection spread. Further, states with persistent investments in health care and education exhibit a higher
rate of recovery. This study also finds that death rates are significantly lower in states with higher
investments in education.
Research limitations/implications – The findings support the conjecture that states that have
consistently invested in social sectors benefited from the associated positive externalities during the crisis
that helped them manage the pandemic better.
Originality/value – This study will help policymakers understand the underlying social forces critical to
the success in the fight against pandemics. Apart from improving preparedness for future pandemics, the
evidence provided in the paper may help give better direction and purpose to tax-financed public spending in
states where social sector development has hitherto received low priority.