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Regional disparities in per capita income in India: convergence or divergence?

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  • Rowan Cherodian
  • A. P. Thirlwall

Abstract

The paper looks at the latest evidence on what has been happening to regional disparities in per capita income (measured as gross state domestic product per capita) in India over the first decade of the twenty-first century (1999/2000 to 2010/2011) by estimating cross-section equations for unconditional and conditional beta (β) convergence and sigma (σ) convergence across thirty-two regions (twenty-eight states and four union territories). There is no evidence of unconditional convergence, but weak evidence of conditional convergence controlling for population growth, credit growth, male literacy, the share of agriculture in state GDP, and state expenditure as a share of state GDP. Sigma divergence has increased continuously, except among the poorest states.

Suggested Citation

  • Rowan Cherodian & A. P. Thirlwall, 2015. "Regional disparities in per capita income in India: convergence or divergence?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 37(3), pages 384-407, July.
    • Handle: RePEc:mes:postke:v:37:y:2015:i:3:p:384-407
    DOI: 10.1080/01603477.2015.1000109
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    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • 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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