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Growth Convergence and Spillovers among Indian States: What Matters? What Does Not?

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  • Piyaporn Sodsriwiboon
  • Sanjay Kalra
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    Abstract

    Convergence and spillovers across countries and within countries are old, but recurrent policy concerns, and India is no exception to this rule. This paper examines convergence and spillovers across Indian states using non-stationary panel data techniques. Results on convergence among Indian states are generally found to be similar, but more nuanced, than previous studies. Generally speaking, there is evidence of divergence over the entire sample period, convergence during sub-periods corresponding to structural breaks, and club convergence. There is strong evidence of club convergence among the high- and low-income states; the evidence for middle-income states is mixed. Dynamic spillover effects among states are small.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 10/96.

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    Length: 33
    Date of creation: 01 Apr 2010
    Date of revision:
    Handle: RePEc:imf:imfwpa:10/96

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    Related research

    Keywords: Economic growth; Economic models; Regional shocks; Spillovers;

    This paper has been announced in the following NEP Reports:

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    Cited by:
    1. Shingal, ANIRUDH, 2010. "Services growth and convergence: Getting India’s states together," MPRA Paper 32813, University Library of Munich, Germany.
    2. Sabyasachi Kar & Debajit Jha & Alpana Kateja, 2011. "Club-convergence and polarization of states: A nonparametric analysis of post-reform India," Indian Growth and Development Review, Emerald Group Publishing, vol. 4(1), pages 53-72, April.

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