Understanding divergence in India: a political economy approach
AbstractWe construct a simple political economy model with imperfect capital markets to explain infrastructure investments across Indian states. The model predicts that: i) the fixed cost of accessing the modern sector, ii) the initial stock of infrastructure, iii) median voter wealth, and iv) corruption, can all potentially explain why different states have different levels of infrastructure investments. The theoretical model is motivated by recent empirical work on India that argues that the reason per-capita income across Indian states has diverged is because of the distribution of infrastructure investments.
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Journal of Economic Policy Reform.
Volume (Year): 11 (2008)
Issue (Month): 1 ()
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Other versions of this item:
- Chetan Ghate, 2008. "Understanding divergence in India: a political economy approach," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 1-9.
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- Ghate, Chetan & Wright, Stephen, 2012.
"The “V-factor”: Distribution, timing and correlates of the great Indian growth turnaround,"
Journal of Development Economics,
Elsevier, vol. 99(1), pages 58-67.
- Chetan Ghate & Stephen Wright, 2009. "The "V-Factor": Distribution, Timing and Correlates of the Great Indian Growth Turnaround," Jena Economic Research Papers 2009-010, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Chetan Ghate & Stephen Wright, 2008. "The "V-Factor": Distribution, Timing and Correlates of the Great Indian Growth Turnaround," Discussion Papers of DIW Berlin 783, DIW Berlin, German Institute for Economic Research.
- Chetan Ghate & Stephen Wright, 2008. "V-Factor: Distribution, timing and correlates of the the great Indian growth turnaround," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 08-03, Indian Statistical Institute, New Delhi, India.
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