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Rising Inequality With High Growth Isn't This Trend Worrisome? Analysis of Kerala Experience

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  • KK Subrahmanian
  • Syam Prasad

Abstract

The relation between growth, inequality and poverty is the central theme of the paper. While the fast economic growth under the neo-liberal policy regime helps reduce poverty, it increases inequality in income distribution in a way that retards the progress in poverty-reduction. The empirical validity of this proposition is examined by tracing trends in per capita income (NSDP) growth and Gini coefficients, estimated from the data on household consumer expenditure (taken as a proxy for income) of NSS surveys, in Kerala as compared to the pattern at all- India and major states during pre and post reform periods. [WP no. 401]

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Paper provided by eSocialSciences in its series Working Papers with number id:1652.

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Date of creation: Sep 2008
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Handle: RePEc:ess:wpaper:id:1652

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Keywords: household; reform; economic growth; inclusive growth; Kerala; pro-poor; poverty; ineqaulity; India; per capita inocme; PCI; NSDP; consumer expenditure; NSS; India; states; income distribution;

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  1. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
  2. Angus Deaton and Jean Drèze & Jean Drèze, 2002. "Poverty and Inequality in India: A Reexamination," Working papers 107, Centre for Development Economics, Delhi School of Economics.
  3. Ravallion, M. & Datt, G., 1991. "Growth and Redistribution Components of Changes in Poverty Measures," Papers 83, World Bank - Living Standards Measurement.
  4. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  5. L. R. Jain & Suresh D. Tendulkar, 1990. "Role of Growth and Distribution in the Observed Change in Headcount Ratio Measure of Poverty: A Decomposition Exercise for India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 25(2), pages 165-205, July.
  6. K.C. Zachariah & S. Irudaya Rajan, 2004. "Gulf revisited: Economic consequences of emigration from Kerala, emigration and unemployment," Centre for Development Studies, Trivendrum Working Papers 363, Centre for Development Studies, Trivendrum, India.
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Cited by:
  1. K. Pushpangadan & G.Murugan, 2008. "Dynamics of rural water supply in coastal Kerala: A Sustainable development view," Centre for Development Studies, Trivendrum Working Papers 402, Centre for Development Studies, Trivendrum, India.
  2. Rajesh, K, 2009. "Participatory Institutions and People’s Practices in India: An analysis of Decentralisation experiences in Kerala State," MPRA Paper 29544, University Library of Munich, Germany.

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