Infrastructure, Openness, And Regional Inequality In India
AbstractThis paper aims to quantify the driving forces behind the observed divergence of Indian economy. The results show that in a closed economy with agriculture as the predominant mode of production, the comparative advantage is mainly determined by the difference in land quality and climate across regions within a country. However, when the economy opens its door to the rest of the world, a region's comparative advantage is evaluated in a broader global context. Therefore, regions adjacent to more developed economies, or with better infrastructure such as ports and airports, enjoy a far better location advantage for trade and development than landlocked regions. More investment in physical infrastructure such as roads will bring the interior regions closer to the world markets and reduce regional disparity. Among all the factors considered, education is the only equalizing factor to regional development.
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Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2002 Annual meeting, July 28-31, Long Beach, CA with number 19902.
Date of creation: 2002
Date of revision:
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- Jeffrey D. Sachs & Nirupam Bajpai & Ananthi Ramiah, 2002. "Understanding Regional Economic Growth in India," Asian Economic Papers, MIT Press, vol. 1(3), pages 32-62.
- Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
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- Sylvie Demurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao & Gene Chang & Andrew Mellinger, 2002.
"Geography, Economic Policy and Regional Development in China,"
Harvard Institute of Economic Research Working Papers
1950, Harvard - Institute of Economic Research.
- Sylvie Démurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao & Gene Chang & Andrew Mellinger, 2002. "Geography, Economic Policy, and Regional Development in China," Asian Economic Papers, MIT Press, vol. 1(1), pages 146-197.
- Sylvie DEMURGER & SACHS & Wing Thye WOO & BAO & CHANG & MELLINGER, 2001. "Geography, Economic Policy and Regional Development in China," Working Papers 200109, CERDI.
- Sylvie Demurger & Jeffrey D. Sachs & Wing Thye Woo & Shuming Bao, Gene Chang & Andrew Mellinger, 2002. "Geography, Economic Policy, and Regional Development in China," NBER Working Papers 8897, National Bureau of Economic Research, Inc.
- Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
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