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Testing Income Convergence: Evidence from Indian States Using Panel Linear and Nonlinear Unit Root Tests

Author

Listed:
  • Mamoni Kalita

    (Faculty of Management, ICFAI University Tripura, India)

  • Aviral Kumar Tiwari

    (Faculty of Management, ICFAI University Tripura, India)

Abstract

The present study attempted to test income convergence of the Indian states. For the analysis, the study utilized panel linear and recently developed panel nonlinear unit root tests for the period 1980-1981 to 2007-2008. Use of recently developed panel nonlinear unit root test was the innovation of the study over the conventional studies based on “sigma” and “beta” convergence for testing convergence of SGDP in Indian sates. Study found strong evidence against the convergence of the State Gross Domestic product (GDP) among the Indian states.

Suggested Citation

  • Mamoni Kalita & Aviral Kumar Tiwari, 2012. "Testing Income Convergence: Evidence from Indian States Using Panel Linear and Nonlinear Unit Root Tests," Economic Research Guardian, Weissberg Publishing, vol. 2(1), pages 60-69, May.
    • Handle: RePEc:wei:journl:v:2:y:2012:i:1:p:60-69
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    Citations

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    Cited by:

    1. Sulekha Hembram & Sushil Kr. Haldar, 2019. "Beta, sigma and club convergence: Indian experience from 1980 to 2015," Indian Economic Review, Springer, vol. 54(2), pages 343-366, December.
    2. Suresh Chand Aggarwal, 2022. "Inequality and Inclusive Development: Evidence from Selected Indian States," Indian Journal of Human Development, , vol. 16(1), pages 55-76, April.
    3. Burcu Ozcan, 2014. "Does Income Converge among EU Member Countries following the Post-War Period? Evidence from the PANKPSS Test," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 22-38, October.

    More about this item

    Keywords

    Convergence; Indian states; Nonlinear panel unit root test;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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