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Effect of globalization on convergence of development across regions of India

Author

Listed:
  • Jayanti Behera

    (Bhadrak Autonomous College)

  • Dukhabandhu Sahoo

    (Indian Institute of Technology Bhubaneswar)

Abstract

The objective of this paper is to examine the effect of globalization on convergence (β, σ, and club convergences) of both human development and gender development across the regions of India for the period 2006–2021 by using the panel data technique. The result reveals that the regions of India experience both absolute and conditional β convergences, σ divergence (growing inequality), and club convergence in human development and gender development. Globalization has a negative impact on the growth rate of human development, while it has a mixed effect on the growth rate of gender development. In the case of the fiscal policy and infrastructure variables, the results are mixed for the growth rate of both human development and gender development. Further, domestic investment and inequality hinder the growth rate of human development, while urbanization and human capital ameliorate it. In the case of gender development, urbanization improves it while human capital and inequality reduce it. Thus, it is suggested that the government should promote globalization in backward regions carefully. The government should improve the quality of education and urbanization in poor regions to increase human development and gender development.

Suggested Citation

  • Jayanti Behera & Dukhabandhu Sahoo, 2025. "Effect of globalization on convergence of development across regions of India," Economic Change and Restructuring, Springer, vol. 58(4), pages 1-45, August.
    • Handle: RePEc:kap:ecopln:v:58:y:2025:i:4:d:10.1007_s10644-025-09901-3
    DOI: 10.1007/s10644-025-09901-3
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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)
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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