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Growth, Inequality and Structural Adjustment: An Empirical Interpretation of the S-Curve for Indian Economy

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  • Narain Sinha

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Abstract

Extending the Kuznets' hypothesis of economic growth (KHEG) an attempt is made in the present paper to examine its validity for the Indian Economy during the period 1980-81 through 1997-98. The results provide an econometric explanation for the increase in inequality after 1990-91 and seek to defend the strategy of economic development followed in India. The conclusions suggest that the reason for the inequalities lies in the social and political restructuring taking place in the Indian economy. Need therefore is to investigate the social decomposition of the economic inequality.

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File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2004/WP2004_16.pdf
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Bibliographic Info

Paper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2004-16.

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Length: 15
Date of creation: 2004
Date of revision:
Handle: RePEc:pas:asarcc:2004-16

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  1. Greenwood, J. & Jovanovic, B., 1988. "Financial Development, Growth, And The Distribution Of Income," RCER Working Papers 131, University of Rochester - Center for Economic Research (RCER).
  2. Persson, T. & Tabellini, G., 1993. "Is Inequality Harmful for Growth," Papers 537, Stockholm - International Economic Studies.
  3. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
  4. Garcia-Penalosa, Cecilia & Aghion, Philippe & Caroli, Eve, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Economics Papers from University Paris Dauphine 123456789/10091, Paris Dauphine University.
  5. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
  6. Gaurav Datt, 1999. "Has Poverty Declined since Economic Reforms? Statistical Data Analysis," Development Research Unit Working Paper Series archive-31, Monash University, Department of Economics.
  7. Holly,Sean & Weale,Martin (ed.), 2000. "Econometric Modelling," Cambridge Books, Cambridge University Press, number 9780521650694.
  8. List, John A & Gallet, Craig A, 1999. "The Kuznets Curve: What Happens after the Inverted-U?," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 200-206, June.
  9. Tribble, Romie, Jr, 1999. "A Restatement of the S-Curve Hypothesis," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 207-14, June.
  10. Robinson, Sherman, 1976. "A Note on the U Hypothesis Relating Income Inequality and Economic Development," American Economic Review, American Economic Association, vol. 66(3), pages 437-40, June.
  11. P. J. Dawson, 1997. "On testing Kuznets' economic growth hypothesis," Applied Economics Letters, Taylor & Francis Journals, vol. 4(7), pages 409-410.
  12. Ram, Rati, 1995. "Economic Development and Income Inequality: An Overlooked Regression Constraint," Economic Development and Cultural Change, University of Chicago Press, vol. 43(2), pages 425-34, January.
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Cited by:
  1. Muhammad Shahbaz, 2010. "Income inequality-economic growth and non-linearity: a case of Pakistan," International Journal of Social Economics, Emerald Group Publishing, vol. 37(8), pages 613-636, July.

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