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Is India Shining?

Author

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  • Anurag Banerjee

    () (Durham University, Durham University Business School)

  • Nilanjan Banik

    () (Mahindra Ecole Centrale)

Abstract

We investigate the popular perception about economic reforms having benefitted only the richer districts between 1999/2000 and 2004/2005. Using the spatial dynamics of district level per-capita income we found that income distribution did not change between the years examined. We argue that this is because of per-capita income across districts being spatially positively correlated. We identify physical infrastructure, human capital, and factories, as factors responsible for increase in income for both the rich as well as the poor districts. Infrastructure, physical or social, is a key component of growth in India. A policy impact an lysis shows development of better drainage and potable water systems has a large impact on income. For the year 2001/02, we find that for every 1 per cent increase in closed drainage system and potable water, district-level median income increases by 1.39 per cent and 0.21 per cent, respectively.

Suggested Citation

  • Anurag Banerjee & Nilanjan Banik, 2013. "Is India Shining?," CEGAP Working Papers 2013_01, Durham University Business School.
  • Handle: RePEc:dur:cegapw:2013_01
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    References listed on IDEAS

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    Cited by:

    1. repec:spr:empeco:v:53:y:2017:i:1:d:10.1007_s00181-017-1250-5 is not listed on IDEAS
    2. Anurag N. Banerjee & Nilanjan Banik & Ashvika Dalmia, 2017. "Demand for household sanitation in India using NFHS-3 data," Empirical Economics, Springer, vol. 53(1), pages 307-327, August.

    More about this item

    Keywords

    Districts of India; Income; Neighbourhood effect; Spatial Analysis;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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