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Club Convergence among the Major Indian States During 1982–2014: Does Investment in Human Capital Matter?

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  • Sulekha Hembram
  • Souparna Maji
  • Sushil Kr. Haldar

Abstract

The objective of this study is to investigate the presence of ‘club convergence’ in respect of income among 15 major states in India during 1982–2014 using Markov chain along with stochastic kernel. The distributional dynamics observed among the major states support the process of ‘club convergence’. The empirical findings prove the hypotheses that economies that are similar in their structural characteristics and initial per capita income levels will converge with each other in per capita terms in the long run. The present study empirically re-establishes the hypotheses of ‘low-level equilibrium trap’ caused by low human capital investment. JEL: C14, H51, H52, O49, O53

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  • Sulekha Hembram & Souparna Maji & Sushil Kr. Haldar, 2019. "Club Convergence among the Major Indian States During 1982–2014: Does Investment in Human Capital Matter?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 184-204, September.
    • Handle: RePEc:sae:soueco:v:20:y:2019:i:2:p:184-204
    DOI: 10.1177/1391561419850300
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    3. Sushil Kr. Haldar & Sulekha Hembram & Suraj Das, 2023. "Multidimensional Human Deprivation in India: Does Club Convergence Exist?," Millennial Asia, , vol. 14(2), pages 200-227, June.
    4. Zahra Dehghan Shabani & Rouhollah Shahnazi, 2020. "Spatial distribution dynamics and prediction of COVID‐19 in Asian countries: spatial Markov chain approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(6), pages 1005-1025, December.

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    More about this item

    Keywords

    Distributional dynamics; club convergence; markov chain; kernel density; human capital investment;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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