Political Concentration, Religious Diversity and Human Development: Evidence from Indian States

Shrabani Mukherjee and Vivek Sharadadevi Jadhav ()
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Shrabani Mukherjee: Associate Professor, Shiv Nadar University, Chennai
Vivek Sharadadevi Jadhav: Phd Research Scholar(Corresponding author), Madras School of Economics

Working Papers from Madras School of Economics,Chennai,India

Abstract: This paper provides a framework that extricates the relationship between fractionalization and HDI and elucidates the impact of political polarisation on the pace of growth for major Indian states in order to determine the existing inequality across Indian states. A number of different composite indices have been constructed to measure ‘Fractionalization’ and ‘Polarization’ ‘Political Stability’ consisting multi-dimensional inter-related indicators to determine the impact of such parameters on HDI using a dynamic panel-data estimation considering the period from 1991 to 2019. The political concentration influences adversely the economic outcomes through obstructing the determination of provision of public good or allocation of resources in the complex decentralised federal structure. This study confirms the strong causality of religious diversity, women participation in political power, state’s share in total member pool of parliament with political stability which harms quality of governance.

Keywords: Fractionalisation; Social Diversity; Political Concentration; Economic Development; Panel Data Analysis (search for similar items in EconPapers)
JEL-codes: D72 O15 O53 Z12 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2022-03
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Persistent link: https://EconPapers.repec.org/RePEc:mad:wpaper:2022-218

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