Is India Shining?

Anurag Banerjee () and Nilanjan Banik ()

No 2011_11, Department of Economics Working Papers from Durham University, Department of Economics

Abstract: In India, the popular perception is economic reforms have benefited the rich more than the poor leading to an unequal income distribution, as in Quah's twin peaks hypothesis. In this article we test this hypothesis by studying the spatial dynamics of income distribution. Using district-level per-capita income we find that the income distribution has not changed. The perception about economic reforms having benefitted only the rich is not correct because income growth across districts is positively correlated spatially. Thus there is a positive spatial multiplier effect on income and growth. In addition, we also identify physical infrastructure, human capital, and factories, as factors responsible for increase in income for both the rich, and the poor districts.

Keywords: Districts of India; Income; Moran’s Index; Spatial Analysis (search for similar items in EconPapers)
JEL-codes: C31 R12 (search for similar items in EconPapers)
Date: 2011-02-16
New Economics Papers: this item is included in nep-ure
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Journal Article: Is India Shining? (2014)
Working Paper: Is India Shining? (2013)
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