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Infrastructure Inequality Across Indian States: Role of Economic, Social, Institutional, and Political Factors

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  • GOVINDA R. TIMILSINA

    (Development Research Group, World Bank, Washington, DC, United States)

  • PRAVAKAR SAHOO

    (Institute of Economic Growth, Delhi University, New Delhi, India)

  • RANJAN KUMAR DASH

    (Symbiosis School of Economics, Symbiosis International (Deemed) University, Pune, Maharashtra, India)

Abstract

Infrastructure development is a major factor of interstate inequality in India’s economic development; however, much less is known about the causes of unequal infrastructure development. Using 11 parameters, this study develops three separate indices: physical, social, and financial infrastructures. It also examines the differential determinants using the system generalized method of moments model for 18 major states in India from 2005 to 2019. The results show that economic factors such as economic performance, financial development, investment, and economic structure have a pivotal impact on physical infrastructure. In addition to economic factors, fiscal (investment, capital expenditure, and internal debt) and demographic (urbanization, agglomeration, and scheduled caste and scheduled tribe population) factors emerge as more relevant in the case of social infrastructure. Political factors play an equally important role in all three types of infrastructure development. The magnitude and significance of drivers vary across the type of infrastructure considered.

Suggested Citation

  • Govinda R. Timilsina & Pravakar Sahoo & Ranjan Kumar Dash, 2025. "Infrastructure Inequality Across Indian States: Role of Economic, Social, Institutional, and Political Factors," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 42(03), pages 137-173, September.
    • Handle: RePEc:wsi:adrxxx:v:42:y:2025:i:03:n:s0116110525500179
    DOI: 10.1142/S0116110525500179
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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • N76 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Latin America; Caribbean

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