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Regional Inequality in India: A Fresh Look

Author

Listed:
  • Nirvikar Singh

    (University of California, Santa Cruz)

  • Laveesh Bhandari

    (Indicus Analytics)

  • Aoyu Chen

    (University of California, Santa Cruz)

  • Aarti Khare

    (Indicus Analytics)

Abstract

There are concerns that regional inequality in India has increased after the economic reforms of 1991. This concern is supported by various statistical analyses. In this paper, we show that the conclusions are sensitive to what measures of attainment are used. In particular, human development indices do not show the same increase in regional inequality. Furthermore, looking at consumption and credit indicators for regions disaggregated below the state level also suggests that inequality trends may not be as bad as suggested by State Domestic Product data, although the greater strength of the economies of the western and southern states emerges in our results. Finally, we briefly discuss policy implications within the context of India’s evolving federal polity.

Suggested Citation

  • Nirvikar Singh & Laveesh Bhandari & Aoyu Chen & Aarti Khare, 2004. "Regional Inequality in India: A Fresh Look," Development and Comp Systems 0412006, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0412006
    Note: Type of Document - pdf; pages: 11
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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. Angus Deaton & Jean Dreze, 2002. "Poverty and Inequality in India: A Re-Examination," Working Papers 184, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
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    Cited by:

    1. Singh, Nirvikar, 2005. "The Idea of South Asia and the Role of the Middle Class," Santa Cruz Department of Economics, Working Paper Series qt3868p628, Department of Economics, UC Santa Cruz.
    2. Ashish Singh, 2010. "The Effect of Family Background on Individual Wages and an Examination of Inequality of Opportunity in India," Journal of Labor Research, Springer, vol. 31(3), pages 230-246, September.
    3. Singh, Nirvikar, 2008. "Holding India together: The role of institutions of federalism," MPRA Paper 12432, University Library of Munich, Germany.
    4. Rubiana Chamarbagwala, 2010. "Economic liberalization and urban–rural inequality in India: a quantile regression analysis," Empirical Economics, Springer, vol. 39(2), pages 371-394, October.
    5. Ghosh, Saibal, 2007. "Economic Geography of Industrial Location: Evidence from Indian States," MPRA Paper 22441, University Library of Munich, Germany.
    6. Pravin Krishna & Guru Sethupathy, 2010. "Trade and Inequality in India," Working Papers 5555, School of International and Public Affairs, Columbia University, revised Oct 2010.
    7. Tiwari, Aviral Kumar & Shahbaz, Muhammad, 2010. "Does financial development increase rural-urban income inequality? Cointegration analysis in the case of Indian economy," MPRA Paper 27093, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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