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Economic Growth and Human Development in Indian States after two decades of Economic Reforms

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  • Saksena, Shalini
  • Deb, Moumita

Abstract

This paper examines the relative performance of 28 major Indian states over the two decades (1990-2010) on economic growth and human development indicators by empirically confirming the two-way nexus between economic growth (EG) and human development (HD) and identifying other important links in the relationship from cross-sectional growth regressions. The paper finds a strong and consistent convergence in indicators of human development across states even as incomes have diverged over the two decades. Further, the classification of the states into vicious, virtuous, HD-lopsided and EG-lopsided categories and the shifts across categories of different states over the two decades reveal the importance of the requirement of simultaneous thrust on EG and HD in order to escape the vicious cycle.

Suggested Citation

  • Saksena, Shalini & Deb, Moumita, 2016. "Economic Growth and Human Development in Indian States after two decades of Economic Reforms," MPRA Paper 71128, University Library of Munich, Germany, revised 05 Mar 2016.
    • Handle: RePEc:pra:mprapa:71128
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    References listed on IDEAS

    as
    1. Mukherjee, Sacchidananda & Chakraborty, Debashis & Sikdar, Satadru, 2014. "Three Decades of Human Development across Indian States: Inclusive Growth or Perpetual Disparity?," Working Papers 14/139, National Institute of Public Finance and Policy.
    2. Sacchidananda Mukherjee & Debashis Chakraborty, 2007. "Environment, Human Development and Economic Growth after Liberalisation: An Analysis of Indian States," Working Papers 2007-016, Madras School of Economics,Chennai,India.
    3. Gustav Ranis & Frances Stewart, 2005. "Dynamic Links between the Economy and Human Development," Working Papers 8, United Nations, Department of Economics and Social Affairs.
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    Cited by:

    1. Bahar Bayraktar-Sağlam Bayraktar-Sağlam, 2018. "Re-Examining Vicious Circles of Development: A Panel Var Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 231-256, May.
    2. Aalok Ranjan Chaurasia, 2019. "Empirics of Human Development in India,1990–2015," Indian Journal of Human Development, , vol. 13(2), pages 135-158, August.

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    More about this item

    Keywords

    Human Development; Economic Growth; Indian States;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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