IDEAS home Printed from https://ideas.repec.org/a/wsi/adrxxx/v42y2025i03ns011611052550026x.html
   My bibliography  Save this article

Does Distance Matter in Convergence Among Indian States?

Author

Listed:
  • SUBARAN ROY

    (Jindal School of Government and Public Policy, O. P. Jindal Global University, Sonipat, Haryana, India)

  • CHITRAKALPA SEN

    (University of Southampton Delhi, Gurgaon, Haryana, India)

Abstract

We investigate convergence among Indian states between 1981 and 2016 using the distance of any state from the leading state as our key variable. We focus on the role of three major sectors—agriculture, manufacturing, and infrastructure—in achieving convergence. Prima facie, we do not find any firm evidence of convergence in our dataset. However, unit root tests both at the state level and in panel data confirm convergence. Considering the three main sectors strengthens our findings, indicating that an increase in the relative income gap with the leading state is associated with a decrease in the Distance variable. This is consistent with the notion of convergence. Agriculture, Manufacturing, and Infrastructure variables demonstrate statistically significant relationships with distance, and each has its own individual impact, in terms of magnitude and direction, on convergence. Additionally, we find that the overall effect of each of these three major variables is actually dependent on the distance. Our results remain robust to alternative estimation methods.

Suggested Citation

  • Subaran Roy & Chitrakalpa Sen, 2025. "Does Distance Matter in Convergence Among Indian States?," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 42(03), pages 105-135, September.
    • Handle: RePEc:wsi:adrxxx:v:42:y:2025:i:03:n:s011611052550026x
    DOI: 10.1142/S011611052550026X
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S011611052550026X
    Download Restriction: Open Access
    File URL: https://libkey.io/10.1142/S011611052550026X?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:adrxxx:v:42:y:2025:i:03:n:s011611052550026x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: https://www.worldscientific.com/worldscinet/adr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.