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Club-convergence and polarization of states: A nonparametric analysis of post-reform India

  • Sabyasachi Kar
  • Debajit Jha
  • Alpana Kateja

Purpose – The purpose of this paper is to study the dynamics of the distribution of per capita income of Indian states in the post-reform period, in order to identify trends towards convergence-club formation, polarization or stratification during this period. Design/methodology/approach – The authors adopt the “distribution dynamics” framework that involves estimating kernel density functions, stochastic kernels and ergodic distributions in order to identify these trends. Findings – The results show that there is polarization in India in the post-reform period and this is due to the contrary growth dynamics of the middle-income states resulting in the “vanishing middle” of the distribution. Originality/value – This is the first study that highlights the contrary growth dynamics among the middle-income states as the driving force behind the polarization of Indian states in the post-reform period.

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Article provided by Emerald Group Publishing in its journal Indian Growth and Development Review.

Volume (Year): 4 (2011)
Issue (Month): 1 (April)
Pages: 53-72

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Handle: RePEc:eme:igdrpp:v:4:y:2011:i:1:p:53-72
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