Understanding Regional Economic Growth in India
Abstract
This paper aims to explain the growth experiences of 14 major states of India between 1980 and 1998. Using two measures of convergence, σ-convergence and ß-convergence, we examine whether per capita incomes in the states have been converging or diverging. By both standards of convergence, India demonstrated overall divergence during 1980-;98, as well as during both the pre-reform and post-reform subperiods. Interestingly, the richer states experienced a degree of convergence during the post-reform period, whereas the poorer states did not. Divergence was most notable within the poorer group of states. A remarkable 82 percent of the cross-state variation in growth is explained by just the urbanization variable in India, with no hint of any conditional convergence after controlling for the degree of urbanization. The regression estimate shows that a 10 percentage point higher rate of urbanization is associated with 1.3 percentage points per year higher rate of annual growth. Copyright (c) 2002 Center for International Development and the Massachusetts Institute of Technology.Download Info
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Bibliographic Info
Article provided by MIT Press in its journal Asian Economic Papers.
Volume (Year): 1 (2002)
Issue (Month): 3 ()
Pages: 32-62
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Web page: http://mitpress.mit.edu/journals/
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Uzma Afzal, 2012. "Human Capital Convergence: Evidence from the Punjab," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(1), pages 45-61, Jan-June.
- Kayam, Saime Suna & Ecer, Sencer & Gupta, R, 2011. "Social determinants of intra-regional dispersion of FDI in India," MPRA Paper 39153, University Library of Munich, Germany.
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- Alessandrini, Michele & Buccellato, Tullio & Scaramozzino, Pasquale, 2008. "Whither the Indian Federation? Regional Disparities and Economic Reforms," MPRA Paper 23416, University Library of Munich, Germany.
- Zhang, Xiaobo & Fan, Shenggen, 2002. "Infrastructure, Openness, And Regional Inequality In India," 2002 Annual meeting, July 28-31, Long Beach, CA 19902, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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- Purohit, Brijesh C., 2008. "Health and human development at sub-state level in India," The Journal of Socio-Economics, Elsevier, vol. 37(6), pages 2248-2260, December.
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"Trade Liberalization, Poverty, and Inequality: Evidence from Indian Districts,"
NBER Working Papers
11614, National Bureau of Economic Research, Inc.
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- Ghosh, Saibal, 2007. "Economic Geography of Industrial Location: Evidence from Indian States," MPRA Paper 22441, University Library of Munich, Germany.
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"Productivity and Convergence in India: State Level Analysis,"
MPRA Paper
23738, University Library of Munich, Germany.
- Kumar, Surender & Managi, Shunsuke, 2012. "Productivity and convergence in India: A state-level analysis," Journal of Asian Economics, Elsevier, vol. 23(5), pages 548-559.
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