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Regional Income Disparities in India and Test for Convergence - 1980 to 2006

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  • Agarwalla, Astha
  • Pangotra, Prem

Abstract

We examine trends in regional disparities in India over a period of 26 years (1980 to 2006). There are wide and increasing variations in economic performances of states over time. We have employed panel data estimation method based on the neo-classical framework. The analysis is based on 25 state economies in India. Results of the analysis suggest convergent trend in regional incomes, conditional upon growth rates of inputs, and rate of technological progress. Speed of convergence has been faster during the period 1992-2006, when Indian economy embarked upon detailed structural reforms. Incomes of the special category states have experienced convergence at a higher rate.

Suggested Citation

  • Agarwalla, Astha & Pangotra, Prem, 2011. "Regional Income Disparities in India and Test for Convergence - 1980 to 2006," IIMA Working Papers WP2011-01-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:wp2011-01-04
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    References listed on IDEAS

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    Cited by:

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    2. Naranpanawa, Athula & Arora, Rashmi, 2012. "Trade Liberalisation and Regional Disparities: Evidence from a Multi-Regional General Equilibrium Model of India," Conference papers 332270, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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