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Agriculture, economic growth and regional disparities in India

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Author Info

  • Pratap S. Birthal
  • Harvinder Singh
  • Shiv Kumar

Abstract

This paper investigates the process of convergence and catching-up among major Indian states during 1980/81–2004/05—a period of economic liberalisation and accelerated economic growth, and also analyses the factors that enhance economic growth and lead states towards an identical steady state. In particular, we examine the role of agricultural conditions in this process. Results indicate absolute divergence in income levels across states. However, after controlling for structural characteristics of states there is a strong tendency of convergence among states. Physical infrastructure and human capital are found to enhance economic growth, but alone are not sufficient for convergence. For convergence, the investment in physical infrastructure and human resources should be accompanied by a reduction in employment pressure on agriculture by improving labour market linkages of agriculture with non‐agricultural sectors, and by promoting growth‐enhancing labour‐intensive agricultural technologies. Copyright (C) 2009 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.1606
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 23 (2011)
Issue (Month): 1 (January)
Pages: 119-131

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Handle: RePEc:wly:jintdv:v:23:y:2011:i:1:p:119-131

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Web page: http://www3.interscience.wiley.com/journal/5102/home

Related research

Keywords: convergence ; income growth ; agricultural employment ; technology adoption ; infrastructure ; human capital ; India ;

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Cited by:
  1. Mr. S.Hirashima, 2009. "Growth-Poverty Linkage and Income-Asset Relation in Regional Disparity: Evidence from Pakistan and India (The Allama Iqbal Memorial Lecture)," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 48(4), pages 357-386.
  2. Andersson, Fredrik N. G. & Edgerton, David & Opper, Sonja, 2011. "A Matter of Time: Revisiting Growth Convergence in China," Working Papers, Lund University, Department of Economics 2011:23, Lund University, Department of Economics, revised 01 Mar 2012.
  3. Sabine D'Costa & Enrique Garcilazo & Joaquim Oliveira Martins, 2012. "The effects of nation-wide policies on regional growth," ERSA conference papers ersa12p745, European Regional Science Association.

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