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Regional income convergence in India: A Bayesian Spatial Durbin Model approach

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  • Soundararajan, Pushparaj

Abstract

A debate on the regional disparity is always an interesting topic. This study analysed the regional income disparity in India during 1980 – 2010, which contains pre, early and later reform periods. The study used per capita GSDP data from Central Statistical Organisation. First, the study reviewed various growth models and suggests that spatial durbin model of Fingleton and Lopez-Bazo(2006) is empirically useful. Second, this study estimated parameters of Bayesian Spatial Durbin Model and disscussed the convergence hypothesis in the light of LeSange and Fischer (2008) formulation. The study concludes that the later reform period has witnessed beta convergence due to feedback effect.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44744.

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Date of creation: 05 Mar 2013
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Handle: RePEc:pra:mprapa:44744

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Keywords: Convergence; Regional; Spatial Durbin Model and Bayesian;

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  1. Enrique López-Bazo & Esther Vayá & Manuel Artís, 2004. "Regional Externalities And Growth: Evidence From European Regions," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 44(1), pages 43-73.
  2. Pace, R Kelley, et al, 1998. "Spatiotemporal Autoregressive Models of Neighborhood Effects," The Journal of Real Estate Finance and Economics, Springer, Springer, vol. 17(1), pages 15-33, July.
  3. ERTUR, Cem & KOCH, Wilfried, 2005. "Growth, Technological Interdependence and Spatial Externalities: Theory and Evidence," LEG - Document de travail - Economie 2005-03, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
  4. Jesus Lopez-Rodriguez, 2008. "Regional Convergence in the European Union: Results from a Panel Data Model," Economics Bulletin, AccessEcon, vol. 18(2), pages 1-7.
  5. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(2), pages 407-37, May.
  6. James Lesage & Manfred Fischer, 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, Taylor & Francis Journals, Taylor & Francis Journals, vol. 3(3), pages 275-304.
  7. Peter Egger & Michael Pfaffermayr, 2006. "Spatial convergence," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 199-215, 06.
  8. Geweke, J, 1993. "Bayesian Treatment of the Independent Student- t Linear Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 8(S), pages S19-40, Suppl. De.
  9. Seya, Hajime & Tsutsumi, Morito & Yamagata, Yoshiki, 2012. "Income convergence in Japan: A Bayesian spatial Durbin model approach," Economic Modelling, Elsevier, Elsevier, vol. 29(1), pages 60-71.
  10. Roberto Basile, 2008. "Regional economic growth in Europe: A semiparametric spatial dependence approach," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 527-544, November.
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