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Regional Convergence and Catch-up in India between 1960 and 1992

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This paper examines the evidence for regional convergence or catch-up in levels and growth rates of per capita income among the 16 major states in India between 1960 and 1992. The results - estimated using OLS, the within-group LSDV estimator, Re-Weighted Least Squares, and Least Trimmed Squares - establish that unconditional convergence in growth rates does not obtain, but that there is clear and robust evidence of conditional convergence. This suggests that important differences between observed state incomes are likely to be caused by different steady-state incomes, to which convergence occurs. The cross-state income distribution is analyzed and the greater polarization between states in terms of levels of income is established using measures of dispersion and kernel density estimates. A tentative conclusion is that a small group of states are pulling away from the rest of the distribution, causing an incipient second peak.

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  • Kamakshya Trivedi, "undated". "Regional Convergence and Catch-up in India between 1960 and 1992," Economics Papers 2003-W01, Economics Group, Nuffield College, University of Oxford.
  • Handle: RePEc:nuf:econwp:0301
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    Cited by:

    1. Das, Samarjit & Ghate, Chetan & Robertson, Peter E., 2015. "Remoteness, Urbanization, and India’s Unbalanced Growth," World Development, Elsevier, vol. 66(C), pages 572-587.
    2. Arfat Ahmad Sofi & S. Raja Sethu Durai, 2015. "Club Convergence Across Indian States: An Empirical Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(4), pages 107-124, December.

    More about this item

    Keywords

    India; Convegence; Growth;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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