IDEAS home Printed from https://ideas.repec.org/a/wsi/serxxx/v59y2014i02ns021759081450012x.html
   My bibliography  Save this article

Regional Convergence Of Economic Growth During Post-Reform Period In India

Author

Listed:
  • JAGANNATH MALLICK

    (Faculty of Economics and Administration, University of Pardubice, Czech Republic)

Abstract

This paper examines the club-convergence and conditional convergence of economic growth of the major 15 states in India over the periods from 1993–1994 to 2004–2005 by using dynamic fixed effect growth models. The result finds that there is club-convergence within the middle income states. There is also evidence of the convergence of per capita income among Indian states by conditioning private investment and public investment along with other factors of economic growth. This paper is innovative in separating the significance of private investment from the public investment in the long-run dynamics of income in Indian states. This paper suggests that regional disparity in income can be reduced by equitable allocation of private investment and equitable distribution of public investment.

Suggested Citation

  • Jagannath Mallick, 2014. "Regional Convergence Of Economic Growth During Post-Reform Period In India," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(02), pages 1-18.
    • Handle: RePEc:wsi:serxxx:v:59:y:2014:i:02:n:s021759081450012x
    DOI: 10.1142/S021759081450012X
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S021759081450012X
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S021759081450012X?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 search for a different version of it.

    References listed on IDEAS

    as
    1. K.L.Krishna, 2004. "Patterns and determinants of economic growth in Indian states," Indian Council for Research on International Economic Relations, New Delhi Working Papers 144, Indian Council for Research on International Economic Relations, New Delhi, India.
    2. Paul Cashin & Ratna Sahay, 1996. "Internal Migration, Center-State Grants, and Economic Growth in the States of India," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 123-171, March.
    3. Miss Catriona Purfield, 2006. "Mind the Gap—Is Economic Growth in India Leaving Some States Behind?," IMF Working Papers 2006/103, International Monetary Fund.
    4. Poulomi Roy & Ajitava Raychaudhuri, 2009. "Intergovernmental Transfer Rules, State Fiscal Policy And Performance In India," World Scientific Book Chapters, in: Bhaskar Dutta & Tridip Ray & E Somanathan (ed.), New And Enduring Themes In Development Economics, chapter 16, pages 369-400, World Scientific Publishing Co. Pte. Ltd..
    5. Singh, Nirvikar & Kendall, Jake & Jain, R.K. & Chander, Jai, 2013. "Regional Inequality in India in the 1990s: A Further Look," Santa Cruz Department of Economics, Working Paper Series qt8pd8n5qn, Department of Economics, UC Santa Cruz.
    6. Unknown, 1961. "The Economic Weekly," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 16(2), pages 1-3.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jagannath Mallick & Sachi Satpathy, 2021. "Estimation of Women Beedi Workers in India and Their Socio-economic Condition," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 499-521, June.
    2. Shanmugam K. & Shanmugam K. Rangasamy, 2024. "Impact of fiscal transfers policy on regional growth convergence in India," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 29(1), pages 38-55, January.
    3. Jagannath Mallick, 2019. "The effects of government investment shocks on private investment: Empirical evidence from the developing economy," Indian Economic Review, Springer, vol. 54(2), pages 291-316, December.
    4. Amit Nandan & Hrushikesh Mallick, 2022. "Do growth-promoting factors induce income inequality in a transitioning large developing economy? An empirical evidence from Indian states," Economic Change and Restructuring, Springer, vol. 55(2), pages 1109-1139, May.
    5. mallick, Jagannath, 2016. "Investigating the Relationship of Disparity in Income, Private investment and wage rate in Indian states: A Panel Cointegration Approach," MPRA Paper 87736, University Library of Munich, Germany, revised 09 Aug 2017.
    6. Aparna P Lolayekar & Pranab Mukhopadhyay, 2020. "“Understanding growth convergence in India (1981–2010): Looking beyond the usual suspects”," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-17, June.
    7. Brajaraja Mishra, 2019. "Inter-State Disparities in the Reduction of Multidimensional Deprivations in India," Indian Journal of Human Development, , vol. 13(3), pages 239-253, December.
    8. Priyabrata Sahoo & Debolina Biswas & Saswata Guha Thakurata, 2023. "Is Growth Pro-poor Among the States of India? A Poverty Decomposition Exercise During the 2000s," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(1), pages 107-133, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chhavi Tiwari & Sankalpa Bhattacharjee & Debkumar Chakrabarti, 2020. "Investigating Regional Inequalities in India: Are Indian Districts Converging?," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(5), pages 684-716, July.
    2. Anurag Banerjee & Nilanjan Banik, 2014. "Is India Shining?," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 59-72, February.
    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. Ghosh, Madhusudan & Ghoshray, Atanu & Malki, Issam, 2013. "Regional divergence and club convergence in India," Economic Modelling, Elsevier, vol. 30(C), pages 733-742.
    5. Reena Kumari, 2016. "Regional disparity in Uttar Pradesh and Bihar: a disaggregated level analysis," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 121-146, October.
    6. Peter Nunnenkamp & Rudi Stracke, 2008. "Foreign Direct Investment In Post-Reform India: Likely To Work Wonders For Regional Development?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 33(2), pages 55-84, December.
    7. Ajit Karnik & Mala Lalvani, 2012. "Growth performance of Indian states," Empirical Economics, Springer, vol. 42(1), pages 235-259, February.
    8. Ghosh, Saibal, 2016. "Does mobile telephony spur growth? Evidence from Indian states," Telecommunications Policy, Elsevier, vol. 40(10), pages 1020-1031.
    9. Oleg Badunenko & Kiril Tochkov, 2010. "Soaring dragons, roaring tigers, growling bears," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(3), pages 539-570, July.
    10. Deepak Sethia, 2016. "Regional Accounts of India: Methods, New Estimates, and Their Uses," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(1), pages 92-119, March.
    11. Amit Nandan & Hrushikesh Mallick, 2022. "Do growth-promoting factors induce income inequality in a transitioning large developing economy? An empirical evidence from Indian states," Economic Change and Restructuring, Springer, vol. 55(2), pages 1109-1139, May.
    12. Gupta, Poonam & Hasan, Rana & Kumar, Utsav, 2009. "Big Reforms but Small Payoffs: Explaining the Weak Record of Growth and Employment in Indian Manufacturing," MPRA Paper 13496, University Library of Munich, Germany.
    13. 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.
    14. Phillips, Kerk L. & Kunrong, Shen, 2005. "What effect does the size of the state-owned sector have on regional growth in China?," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1079-1102, January.
    15. Sanghamitra Bandyopadhyay, 2003. "Convergence Club Empirics: Some Dynamics and Explanations of Unequal Growth across Indian States," WIDER Working Paper Series DP2003-77, World Institute for Development Economic Research (UNU-WIDER).
    16. Mukhopadhyay, Jyoti Prasad & Banik, Nilanjan, 2013. "The Red Corridor Region of India: What Do the Data Tell Us?," MPRA Paper 58616, University Library of Munich, Germany.
    17. Schiff, Maurice, 2002. "Love thy neighbor: trade, migration, and social capital," European Journal of Political Economy, Elsevier, vol. 18(1), pages 87-107, March.
    18. V P Prince Prabakaran, 2019. "Revival of Agriculture in India - A Theoritical Perspective," Shanlax International Journal of Economics, Shanlax Journals, vol. 7(4), pages 52-56, September.
    19. Joe Varghese & Vijay Aruldas & Panniyammakal Jeemon, 2008. "Beyond the Numbers," Indian Journal of Gender Studies, Centre for Women's Development Studies, vol. 15(1), pages 115-125, January.
    20. Sulekha Hembram & Sushil Kr. Haldar, 2019. "Beta, sigma and club convergence: Indian experience from 1980 to 2015," Indian Economic Review, Springer, vol. 54(2), pages 343-366, December.

    More about this item

    Keywords

    Private investment; convergence; regional growth; panel data methods; E22; R11; C23;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    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:serxxx:v:59:y:2014:i:02:n:s021759081450012x. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: http://www.worldscinet.com/ser/ser.shtml .

    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.