A Comparative Study of the Association between Occupational Safety and Economic Growth in North Indian States of Punjab and Haryana

Abstract

Empirical studies in economics often overlook the association in relation to economic growth and occupational safety, specifically concerning the North Indian states of Punjab and Haryana. The present study empirically examines the linkages between occupational safety reflected through fatal accidents at workplace and economic growth represented by gross state domestic product (GSDP) per capita .This research uses annual time series data concerning the period from 1999 to 2022 retrieved from statistical abstract of respective states. The employment of the autoregressive distributed lag (ARDL) model comparatively analyzes the dynamic association among occupational safety and economic growth in both states. The research finds that economic growth represented by GSDP per capita significantly and negatively impacts fatal accidents at the workplace in Punjab whereas, it happens to be statistically insignificant in the case of Haryana, likely due to its industrial composition, and massive accidents at the workplace in the automobile sector. Additionally, an error correction model examines short-term dynamics and finds the existence of robust adjustment mechanisms in both states. The study is vital as it comparatively analyzes the association among occupational safety and economic growth in two Indian States and it points towards the execution of more inclusive and effective policies to promote occupational safety along with economic growth.