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India

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  • Petia Topalova

Abstract

While many have celebrated India''s accelerating economic growth, some have expressed concern about the distributional impacts of the growth process. Cognizant of the vulnerability of its large population below poverty, India''s authorities have made faster and more inclusive economic growth the primary goal of their development strategy. This paper aims to document how the benefits of economic expansion were shared across the income distribution over the last two decades using disaggregate household level data. Experiences across Indian states suggest an important role for economic policy in shaping the inclusiveness of growth. States with higher financial development, more flexible labor markets, and higher average education experienced greater relative gains for the poor. Improving infrastructure may also lead to a growth process that is more inclusive of the poor.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/54.

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Length: 29
Date of creation: 01 Mar 2008
Date of revision:
Handle: RePEc:imf:imfwpa:08/54

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Keywords: Poverty; Economic growth; Income distribution; Labor markets; Poverty reduction; consumption growth; growth rate; growth rates; pro-poor growth; per capita consumption; pro-poor; distribution of income; private consumption; social services; changes in poverty; social spending; changes in inequality; real gdp; per capita expenditure; evolution of inequality; reducing poverty; gdp per capita; measure of poverty; declines in poverty; poverty change; determining growth; absolute inequality; sectoral growth rates; rising inequality; per capita consumption growth; social exclusion; effect of growth on poverty; expenditure per capita; geographic poverty traps; measured poverty; gdp growth; inequality constant;

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References

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  1. Dani Rodrik & Arvind Subramanian, 2004. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," NBER Working Papers 10376, National Bureau of Economic Research, Inc.
  2. Rana Hasan & Devashish Mitra & K.V. Ramaswamy, 2003. "Trade Reforms, Labor Regulations and Labor-Demand Elasticities: Empirical Evidence from India," NBER Working Papers 9879, National Bureau of Economic Research, Inc.
  3. Catriona Purfield, 2006. "Mind the Gap," IMF Working Papers 06/103, International Monetary Fund.
  4. Burgess, Robin & Pande, Rohini, 2004. "Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4211, C.E.P.R. Discussion Papers.
  5. Chaudhuri, Shubham & Ravallion, Martin, 2006. "Partially awakened giants : uneven growth in China and India," Policy Research Working Paper Series 4069, The World Bank.
  6. Dani Rodrik & Arvind Subramanian, 2004. "From "Hindu Growth" to Productivity Surge," IMF Working Papers 04/77, International Monetary Fund.
  7. Aditya Bhattacharjea, 2006. "Labour Market Regulation and Industrial Performance in India--A Critical Review of the Empirical Evidence," Working papers, Centre for Development Economics, Delhi School of Economics 141, Centre for Development Economics, Delhi School of Economics.
  8. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  9. Catriona Purfield, 2007. "India," IMF Working Papers 07/221, International Monetary Fund.
  10. Timothy Besley & Robin Burgess, 2003. "Halving Global Poverty," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 17(3), pages 3-22, Summer.
  11. Poonam Gupta, 2008. "What Constrains Indian Manufacturing," Working Papers id:1597, eSocialSciences.
  12. Berta Esteve-Volart, 2004. "Gender discrimination and growth: theory and evidence from India," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 6641, London School of Economics and Political Science, LSE Library.
  13. Banerjee, Abhijit V & Duflo, Esther, 2003. " Inequality and Growth: What Can the Data Say?," Journal of Economic Growth, Springer, Springer, vol. 8(3), pages 267-99, September.
  14. Berta Esteve-Volart, 2004. "Gender Discrimination and Growth: Theory and Evidence from India," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers, Suntory and Toyota International Centres for Economics 42, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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Citations

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Cited by:
  1. Chalasani, Satvika, 2012. "Understanding wealth-based inequalities in child health in India: A decomposition approach," Social Science & Medicine, Elsevier, Elsevier, vol. 75(12), pages 2160-2169.
  2. Richard G. Harris & Peter Robertson, 2009. "Trade, Wages And Skill Accumulation In The Emerging Giants," Economics Discussion / Working Papers, The University of Western Australia, Department of Economics 09-19, The University of Western Australia, Department of Economics.
  3. Ghosh, Saibal, 2009. "Does Financial Outreach Engender Economic Growth? Evidence from Indian States," MPRA Paper 32072, University Library of Munich, Germany.

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