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Analysis of inter-state and inter-region beta-convergence of growth rates in India in post-reform period

Author

Listed:
  • Ombir Singh

    (Government P.G. College, Ambala Cantt, Haryana, India)

  • Parveen Kumar

    (Guest Faculty, Department of Humanities and Social Sciences, National Institute of Technology, Kurukshetra, Haryana, India)

  • Magdalena Radulescu

    (National University of Science and Technology Politehnica Bucharest, Pitesti University Center, Pitesti, Romania
    Institute of Doctoral and Post-Doctoral Studies, University Lucian Blaga of Sibiu, Sibiu, Romania
    UNEC Research Methods Application Center, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku 1001, Azerbaijan)

Abstract

There is a long-standing debate among scholars over the convergence versus divergence of the regional growth rate of per capita income in India. The present study tries to resolve this debate in light of the latest available data by using Beta-convergence analysis in a panel data framework. The results indicate the presence of unconditional divergence and conditional convergence in the case of both inter-state and inter-region analysis, which shows that the unconditional divergence may be due to the presence of omitted variable bias. The results also show that the primary sector is associated with the reduction of interstate and inter-region income inequality, while the growth of the tertiary sector is correlated with increasing interstate and inter-region income inequality. Therefore, the findings of the study imply that the phenomenon of service-led growth in the post-reform period was accompanied by the widening gap in the growth of various states and regions of India.

Suggested Citation

  • Ombir Singh & Parveen Kumar & Magdalena Radulescu, 2024. "Analysis of inter-state and inter-region beta-convergence of growth rates in India in post-reform period," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 74(3), pages 359-377, September.
    • Handle: RePEc:aka:aoecon:v:74:y:2024:i:3:p:359-377
    DOI: 10.1556/032.2024.00017
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    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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