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Income convergence in India: a nonparametric approach

Author

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  • Arfat Sofi
  • S. Durai

Abstract

This study tests the convergence hypothesis across 22 Indian states for the time period from 1980–1981 to 2010–2011. Using second order Gaussian Kernel density function, results reveal a multi-modal behavior of income distribution with significant signs of club formation across different income strata over the transitional process. The results from quantile estimation shows that Indian states are diverging in absolute sense however converging on conditional basis. Moving from lower to higher quantile the strength of absolute divergence weakens whereas the conditional convergence is getting stronger. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Arfat Sofi & S. Durai, 2016. "Income convergence in India: a nonparametric approach," Economic Change and Restructuring, Springer, vol. 49(1), pages 23-40, February.
    • Handle: RePEc:kap:ecopln:v:49:y:2016:i:1:p:23-40
    DOI: 10.1007/s10644-015-9169-3
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    Citations

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    Cited by:

    1. Omid Ranjbar & Tsangyao Chang & Chien-Chiang Lee & Zahra Mila Elmi, 2018. "Catching-up process in the transition countries," Economic Change and Restructuring, Springer, vol. 51(3), pages 249-278, August.
    2. Gregory Brock, 2020. "The real Oaxaca decomposition: convergence within Mexico’s Oaxaca region in the twenty-first century—Do types of crime and religious belief matter?," Economic Change and Restructuring, Springer, vol. 53(4), pages 543-569, November.
    3. Arfat Ahmad Sofi & Subash Sasidharan & Mohammad Younus Bhat, 2023. "Economic growth and club convergence: Is there a neighbour's effect?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2475-2494, July.
    4. Weili Zhang & Wei Xu & Xiaoye Wang, 2019. "Regional convergence clubs in China: identification and conditioning factors," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 327-350, April.
    5. 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.

    More about this item

    Keywords

    Growth; Convergence; Kernel density; Quintile regression; Panel data; India; C14; C23; O47;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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