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Regional divergence in India during the era of liberalization: a sectoral decomposition

Author

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  • Sabyasachi Kar
  • S SakthivelAuthor-Email: skar_ieg@yahoo.com

    (Institute of Economic Growth, India)

Abstract

The objective of this paper is to understand and measure the contribution of various sectors towards the divergence of regional output in India in the era of liberalization. We have first described a framework that enables us to decompose the rate of divergence into the contribution made by various sectors. Next, we have used this framework to focus on the role of the agricultural, industrial and the services sectors of the Indian economy in bringing about changes in the level of regional inequality in the period following the liberalization of the economy. The results show that while the services and industrial sectors are largely responsible for the divergence during this period, the agricultural sector was offsetting some of the divergence.

Suggested Citation

  • Sabyasachi Kar & S SakthivelAuthor-Email: skar_ieg@yahoo.com, 2006. "Regional divergence in India during the era of liberalization: a sectoral decomposition," Journal of Developing Areas, Tennessee State University, College of Business, vol. 40(1), pages 65-79, September.
    • Handle: RePEc:jda:journl:vol.40:year:2006:issue1:pp:65-79
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    Citations

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    Cited by:

    1. Maparu, Tuhin Subhra & Mazumder, Tarak Nath, 2021. "Investigating causality between transport infrastructure and urbanization: A state-level study of India (1991–2011)," Transport Policy, Elsevier, vol. 113(C), pages 46-55.
    2. Chhavi Tiwari & Sankalpa Bhattacharjee & Debkumar Chakrabarti, 2020. "Investigating Regional Inequalities in India: Are Indian Districts Converging?," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(5), pages 684-716, July.
    3. Rittu Susan Varkey & Prasant Kumar Panda, 2020. "Inter-state Growth Spillovers in Indian Major States: An Empirical Analysis," Jindal Journal of Business Research, , vol. 9(1), pages 7-17, June.
    4. Pratap Kumar Mahakur & Narayan Chandra Nayak, 2019. "An investigation of intrastate income disparities and regional convergence in Odisha," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(2), pages 288-308, December.
    5. Abdul Jabbar Abdullah & Hristos Doucouliagos & Elizabeth Manning, 2015. "Are regional incomes in Malaysia converging?," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 69-94, November.

    More about this item

    Keywords

    Divergence; Regional Inequality; Asia; India; Decomposition.;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, 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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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