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Regional Inequality of West Bengal: A District Level Study

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  • Dey, Saurav Kumar

    (Research Scholar,)

Abstract

This paper examines the inequality and convergence of districts of West Bengal using the neo-classical convergence theory. The district domestic product (DDP) has been used to understand the regional inequality pattern and convergence among the 18 districts of West Bengal. The estimated σ-convergence and unconditional β-convergence reveal uneven growth among the districts. The σ-convergence measured in terms of log SD and CV shows rising trend during the study period. The dispersion amongst districts, measured in terms of log standard deviation of per capita income, increased from 7.54 in 1993-94 to 8.87 in 2007-08. The estimated result of unconditional β-convergence also supports the hypothesis that rich districts grow faster than the poor ones. The positive and significant correlation coefficient between gross DDP and various socioeconomic variables also support economic reasoning that districts with higher per capita income have higher level of urbanization, literacy, banking infrastructure, per capita bank advances, number of MSMEs and employment in MSMEs. For reversing the tendency of divergence, backward districts have to be developed, especially through developing social and physical infrastructure.

Suggested Citation

  • Dey, Saurav Kumar, 2015. "Regional Inequality of West Bengal: A District Level Study," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 38(01), pages 101-117, March.
    • Handle: RePEc:ris:badest:0780
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    References listed on IDEAS

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    Cited by:

    1. Sulekha Hembram & Sohini Mukherjee & Sushil Kr. Haldar, 2020. "Regional convergence of social and economic development in the districts of West Bengal, India: Do clubs exist? Does space matter? An empirical analysis using DLHS I–IV and NFHS IV data," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(1), pages 58-90, June.

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    More about this item

    Keywords

    Growth; Inequality; Convergence;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • 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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