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Mind the Gap

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  • Catriona Purfield
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    Abstract

    This paper examines how growth has varied across India''s states. It finds that (i) the income gap between rich and poor states has widened; (ii) rich and faster-growing states have been more effective in reducing poverty; (iii) poor and slower-growing states have had little success in generating private sector jobs; (iv) labor and capital flows do little to close income gaps; and (v) the volatility in economic growth is greatest in poor states. Differences in states'' policies affect the cross-state pattern of growth. Greater private sector investment, smaller governments, and better institutions are found to have a positive impact on growth.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/103.

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    Length: 28
    Date of creation: 01 Apr 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/103

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    Related research

    Keywords: Economic reforms; Economic growth; Income distribution; employment; per capita income; growth rates; growth rate; per capita incomes; real per capita income; job creation; employment generation; total employment; high employment; employment share; structure of employment; low employment; per capita income growth; employment growth; per capita income levels; female labor force; labor migration; labor force participation; private employment; female labor force participation;

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    References

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    Citations

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    Cited by:
    1. Amartya Lahiri & Kei-Mu Yi, 2006. "A tale of two states: Maharashtra and West Bengal," Working Papers 06-16, Federal Reserve Bank of Philadelphia.
    2. Fleisher, Belton & Li, Haizheng & Zhao, Min Qiang, 2010. "Human capital, economic growth, and regional inequality in China," Journal of Development Economics, Elsevier, vol. 92(2), pages 215-231, July.
    3. de Haan, A., 2011. "Inclusive growth? Labour migration and poverty in India," ISS Working Papers - General Series 22201, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    4. Petia Topalova, 2008. "India," IMF Working Papers 08/54, International Monetary Fund.
    5. Ouyang, Puman & Fu, Shihe, 2012. "Economic growth, local industrial development and inter-regional spillovers from foreign direct investment: Evidence from China," China Economic Review, Elsevier, vol. 23(2), pages 445-460.

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