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Transition pattern of Indian states across different categories of growth and development: Post economic liberalisation experience

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  • Shalini Saksena
  • Moumita Deb

Abstract

This paper analyses the emerging trends in twenty eight major states in India in respect of few key parameters which have an intrinsic bearing on social and economic development and establishes the economic growth (EG) - human development (HD) nexus in the post economic reforms era (1990s to 2010s). Data for the period 1990 to 2011/12 is used to analyse the relative performance of Indian states on human development and growth indicators and determine if inter-state disparity has increased or decreased over time. The two way relationship between EG and HD is empirically estimated using cross section pooled data. Further, states are classified into four different categories of growth and development: (i) vicious cycle (low EG - low HD), (ii) virtuous cycle (high EG - high HD), (iii) lopsided-EG (high EG - low HD) and (iv) lopsided-HD (low EG - high HD), for the years 1993, 1999-2000 and 2011-12. The pattern of transition of states across different categories over the two decades is traced. Such categorization and the shifts therein have obvious policy implications. The paper highlights the need for more focused regional planning and a simultaneous policy thrust on EG and HD to enable states escape the vicious cycle of low growth and development.This paper analyses the emerging trends in twenty eight major states in India in respect of few key parameters which have an intrinsic bearing on social and economic development and establishes the economic growth (EG) - human development (HD) nexus in the post economic reforms era (1990s to 2010s). Data for the period 1990 to 2011/12 is used to analyse the relative performance of Indian states on human development and growth indicators and determine if inter-state disparity has increased or decreased over time. The two way relationship between EG and HD is empirically estimated using cross section pooled data. Further, states are classified into four different categories of growth and development: (i) vicious cycle (low EG - low HD), (ii) virtuous cycle (high EG – high HD), (iii) lopsided-EG (high EG – low HD) and (iv) lopsided-HD (low EG – high HD), for the years 1993, 1999-2000 and 2011-12. The pattern of transition of states across different categories over the two decades is traced. Such categorization and the shifts therein have obvious policy implications. The paper highlights the need for more focused regional planning and a simultaneous policy thrust on EG and HD to enable states escape the vicious cycle of low growth and development.

Suggested Citation

  • Shalini Saksena & Moumita Deb, 2016. "Transition pattern of Indian states across different categories of growth and development: Post economic liberalisation experience," Business and Economic Horizons (BEH), Prague Development Center, vol. 12(3), pages 121-140, September.
    • Handle: RePEc:pdc:jrnbeh:v:12:y:2016:i:3:p:121-140
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    Citations

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    Cited by:

    1. Funda Hatice Sezgin & Yunus Budak, 2022. "The Growth Impact of Human Development: A Developed- and Developing-Country Comparison," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 72(72-1), pages 81-104, June.
    2. P. K. Viswanathan & Chandra Sekhar Bahinipati, 2021. "Growth and human development in the regional economy of Gujarat, India: an analysis of missed linkages," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(1), pages 25-47, June.

    More about this item

    Keywords

    Human development; economic growth; Indian states; economic liberalisation;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • 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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