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Club-Convergence and Polarisation of States : A Nonparametric Analysis of Post-Reform India

Author

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  • Sabyasachi Kar

    (Institute of Economic Growth)

  • Debajit Jha
  • Alpana Kateja

Abstract

The objective of this paper is to study the dynamics of the distribution of regional per capita income of Indian states in the post reform period, in order to identify trends towards convergence-club formation, polarisation or stratification during this period. We adopt the distribution dynamics framework that uses kernel density estimates, stochastic kernels and ergodic distributions in order to identify these trends. The results show that there is polarisation in India in the post-reform period and this is due to the contrary growth dynamics of the middle income states resulting in the vanishing middle of the relative income distribution. Since polarisation increases the possibility of conflict, this study highlights one of the undesirable consequences of the current growth process in India.

Suggested Citation

  • Sabyasachi Kar & Debajit Jha & Alpana Kateja, 2010. "Club-Convergence and Polarisation of States : A Nonparametric Analysis of Post-Reform India," Development Economics Working Papers 23036, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:develo:23036
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    References listed on IDEAS

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    Cited by:

    1. Rao, N. Chandrasekhara, 2015. "Disadvantaged Regions and Social Groups: Is There a Way Out?," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(3).
    2. Mendez-Guerra, Carlos, 2017. "Heterogeneous Growth and Regional (Di)Convergence in Bolivia: A Distribution Dynamics Approach," MPRA Paper 81060, University Library of Munich, Germany.
    3. Das, Samarjit & Ghate, Chetan & Robertson, Peter E., 2015. "Remoteness, Urbanization, and India’s Unbalanced Growth," World Development, Elsevier, vol. 66(C), pages 572-587.
    4. Monica Raileanu Szeles & Rodrigo Mendieta Muñoz, 2016. "Analyzing the Regional Economic Convergence in Ecuador. Insights from Parametric and Nonparametric Models," Journal for Economic Forecasting, Institute for Economic Forecasting, pages 43-65.
    5. Răileanu-Szeles, Monica & Albu, Lucian, 2015. "Nonlinearities and divergences in the process of European financial integration," Economic Modelling, Elsevier, vol. 46(C), pages 416-425.
    6. Jaunky, Vishal Chandr, 2013. "Divergence in technical efficiency of electric utilities: Evidence from the SAPP," Energy Policy, Elsevier, vol. 62(C), pages 419-430.
    7. Kennedy, Loraine & Robin, Kim & Zamuner, Diego, 2013. "Comparing State-level policy responses to economic reforms in India," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 13.

    More about this item

    Keywords

    Distribution Dynamics; Regional Convergence; Nonparametric estimation; Polarisation; India;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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