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Remoteness and Unbalanced Growth: Understanding Divergence Across Indian Districts

Author

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  • Samarjit Das

    (Indian Statistical Institute, Kolkata)

  • Chetan Ghate

    (Indian Statistical Institute, Delhi)

  • Peter E. Robertson

    (University of Western Australia)

Abstract

The existing literature on Indian growth finds no evidence of convergence across states. This represents a puzzle given the relatively free flows of capital, labor and commodities across state borders. We use a new data set of district level income and socio-economic data to explore the hypotheses of conditional convergence, using distance as a indicator of internal geographical trade and migration costs. We find evidence of conditional convergence for Indian districts but at a rate that is only half of Barro’s “Iron Law”. From a policy perspective the results suggest that infrastructure supply is critical for achieving a more balanced pattern of growth in India.

Suggested Citation

  • Samarjit Das & Chetan Ghate & Peter E. Robertson, 2013. "Remoteness and Unbalanced Growth: Understanding Divergence Across Indian Districts," Economics Discussion / Working Papers 13-31, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:13-31
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    Cited by:

    1. Flora Pandya & Suresh Maind, 2017. "Panel data analysis: convergence of Indian states with infrastructure," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(1), pages 181-195, April.
    2. R. V. Dadibhavi, 2019. "Regional Disparities, Growth and Divergence in Income in Karnataka," Review of Development and Change, , vol. 24(1), pages 55-78, June.

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