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Whither the Indian Federation? Regional Disparities and Economic Reforms

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  • Alessandrini, Michele
  • Buccellato, Tullio
  • Scaramozzino, Pasquale

Abstract

The last two decades have seen increased divergence among the states of the Indian Federation in terms of their economic performance. This paper uses spatial econometric methods to examine how the regional pattern of growth has been influenced by the economic reforms implemented since the early 1990s. The process of liberalization and increased openness to international markets has imparted a clear spatial connotation to the gap dividing low and fast growing states. Winners were those states that benefited the most from the recent process of reform and liberalization, thanks also to their geographical advantage and to the presence of a developed service sector. Losers were instead the landlocked and highly populated states with a predominant agricultural sector and a low level of innovation.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23416.

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Date of creation: Jul 2008
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Handle: RePEc:pra:mprapa:23416
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Keywords: India; Regional Convergence; Spatial Econometrics;

Find related papers by JEL classification:

  • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
  • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
  • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
  • 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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Cited by:

  1. Bhatt, Antra & Scaramozzino, Pasquale, 2013. "Federal Transfers and Fiscal Discipline in India: An Empirical Evaluation," ADB Economics Working Paper Series 343, Asian Development Bank.

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