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Divergence in India: Income differentials at the state level, 1970-97

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  • Michelle Baddeley
  • Kirsty McNay
  • Robert Cassen

Abstract

We examine India's regional disparities in economic performance between 1970-97. Our preliminary analysis shows that, in absolute terms, initially poorer states grew at slower rates than initially wealthier ones and that there is also evidence of increasing dispersion of income levels across the states. Our econometric analysis investigates the possibility of club convergence and conditional convergence. Although we do not find evidence of the former, we can suggest some of the factors associated in the latter. Our research also indicates that the onset of economic policy reform in 1991 significantly intensified growth differentials between the states.

Suggested Citation

  • Michelle Baddeley & Kirsty McNay & Robert Cassen, 2006. "Divergence in India: Income differentials at the state level, 1970-97," Journal of Development Studies, Taylor & Francis Journals, vol. 42(6), pages 1000-1022.
  • Handle: RePEc:taf:jdevst:v:42:y:2006:i:6:p:1000-1022
    DOI: 10.1080/00220380600774814
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    Cited by:

    1. Ghosh, Madhusudan & Ghoshray, Atanu & Malki, Issam, 2013. "Regional divergence and club convergence in India," Economic Modelling, Elsevier, vol. 30(C), pages 733-742.
    2. Kim, Rockli & Mohanty, Sanjay K. & Subramanian, S.V., 2016. "Multilevel Geographies of Poverty in India," World Development, Elsevier, vol. 87(C), pages 349-359.
    3. Jagannath Mallick, 2013. "Private investment in India: regional patterns and determinants," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 515-536, October.
    4. Ankita Mishra & Vinod Mishra, 2016. "Is there a conditional convergence in the per capita incomes of BIMAROU states in India?," Monash Economics Working Papers 03-16, Monash University, Department of Economics.
    5. Gaurav Nayyar, 2017. "Economic Growth and the Incom There is a fairly vast literature, which attempts to explain cross-regional (between countries or between states within countries) differences in per capita income growth," Economics Bulletin, AccessEcon, pages 264-281.
    6. Arfat Ahmad Sofi & S. Raja Sethu Durai, 2016. "Income convergence in India: a nonparametric approach," Economic Change and Restructuring, Springer, vol. 49(1), pages 23-40, February.
    7. repec:eee:ecmode:v:70:y:2018:i:c:p:429-437 is not listed on IDEAS

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