The “V-factor”: Distribution, timing and correlates of the great Indian growth turnaround

Chetan Ghate and Stephen Wright

Journal of Development Economics, 2012, vol. 99, issue 1, 58-67

Abstract: We analyze a panel of output series for India, disaggregated by 15 states and 14 broad industry groups. Using principal components (Bai, 2004; Bai and Ng, 2004) we find that a single common “V-factor” captures well the significant shift in the cross-sectional distribution of state-sectoral output growth rates since the 2nd half of the 1980s. The timing of the turnaround implied by the V-factor is more closely related to the pattern of policy reforms than has been found in previous research. Regression-based analysis also provides some insights into the uneven distribution of the turnaround across Indian states.

Keywords: Indian economic growth; Factor models; Principal components; Convergence; Divergence; Indian states (search for similar items in EconPapers)
JEL-codes: O10 O40 O47 O53 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (17)

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Related works:
Working Paper: The "V-Factor": Distribution, Timing and Correlates of the Great Indian Growth Turnaround (2009)
Working Paper: V-Factor: Distribution, timing and correlates of the the great Indian growth turnaround (2008)
Working Paper: The "V-Factor": Distribution, Timing and Correlates of the Great Indian Growth Turnaround (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:99:y:2012:i:1:p:58-67

DOI: 10.1016/j.jdeveco.2011.09.002

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