Club-convergence and polarization of states: A nonparametric analysis of post-reform India
Abstract
Purpose – The purpose of this paper is to study the dynamics of the distribution of per capita income of Indian states in the post-reform period, in order to identify trends towards convergence-club formation, polarization or stratification during this period. Design/methodology/approach – The authors adopt the “distribution dynamics” framework that involves estimating kernel density functions, stochastic kernels and ergodic distributions in order to identify these trends. Findings – The results show that there is polarization in India in the post-reform period and this is due to the contrary growth dynamics of the middle-income states resulting in the “vanishing middle” of the distribution. Originality/value – This is the first study that highlights the contrary growth dynamics among the middle-income states as the driving force behind the polarization of Indian states in the post-reform period.Download Info
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Bibliographic Info
Article provided by Emerald Group Publishing in its journal Indian Growth and Development Review.
Volume (Year): 4 (2011)
Issue (Month): 1 (April)
Pages: 53-72
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Related research
Keywords: Distribution of wealth; India; National economy;Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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