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Structural Change, Economic Growth and Trade: Case for Regional Reallocation of Investment in India

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  • Alokesh Barua
  • Aparna Sawhney

Abstract

The economic structure and rates of growth across the states in India are markedly different, with significant disparities in income per capita growth as well as sector-specific performance. The high-income states have typically led the Indian growth story with their high growth rates, while regional inequality continues to increase. The recent policy focus in India has been to encourage inclusive growth across sectors and disparate regions within the country through development of core public services (water, education, transport, healthcare, etc), especially in the poor and special status states. To understand the structural challenges facing India, it is important to understand which economic sectors have been the most critical in driving regional inequality over the years and how these sectors impact economic growth.

Suggested Citation

  • Alokesh Barua & Aparna Sawhney, 2016. "Structural Change, Economic Growth and Trade: Case for Regional Reallocation of Investment in India," Working Papers id:10501, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:10501
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    References listed on IDEAS

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    1. R. Nagaraj & A. Varoudakis & M.-A. Véganzonès, 2000. "Long-run growth trends and convergence across Indian States," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(1), pages 45-70.
    2. F. H. Hahn, 1963. "A Comment," Oxford Economic Papers, Oxford University Press, vol. 15(2), pages 191-191.
    3. Anisur Rahman, 1966. "Regional Allocation of Investment: The Continuous Version," The Quarterly Journal of Economics, Oxford University Press, vol. 80(1), pages 159-160.
    4. M. L. Weitzman, 1970. "Optimal Growth with Scale Economies in the Creation of Overhead Capital," Review of Economic Studies, Oxford University Press, vol. 37(4), pages 555-570.
    5. Robert Dorfman, 1963. "Regional Allocation of Investment: Comment," The Quarterly Journal of Economics, Oxford University Press, vol. 77(1), pages 162-165.
    6. Kaliappa Kalirajan & Shashanka Bhide & Kanhaiya Singh, 2009. "Development Performance Across Indian States and The Role of the Governments," ASARC Working Papers 2009-05, The Australian National University, Australia South Asia Research Centre.
    7. María Teresa Ramírez & Hadi Salehi Esfahani, 1999. "Infrastructure and Economic Growth," Borradores de Economia 123, Banco de la Republica de Colombia.
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    Citations

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    Cited by:

    1. Devasmita Jena & Alokesh Barua, "undated". "Does Trade, Structural Transformation and Income Convergence: Empirical Evidence from the EU and the ASEAN," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 18-04, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    2. Naranpanawa, Athula & Arora, Rashmi, 2014. "Does Trade Liberalization Promote Regional Disparities? Evidence from a Multiregional CGE Model of India," World Development, Elsevier, vol. 64(C), pages 339-349.

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