Economic Growth and Equity: India, 1970-71 to 1988-89

Suresh D. Tendulkar and L. R. Jain
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Suresh D. Tendulkar: Delhi School of Economics
L. R. Jain: Indian Statistical Institute, New Delhi

Indian Economic Review, 1995, vol. 30, issue 1, 19-49

Abstract: This paper applies the equivalent analytical results on poverty and social welfare orderings to the price-adjusted size distributions of consumer expenditure for the rural, the urban and the entire (rural-plus-urban) population of India over eight time points between 1970-71 and 1988-89. The unrestricted first-order dominance has been observed to hold in as many as 20(rural), 21 (urban) and 22 (rural-plus-urban) comparisons out of total 28 comparisons each in irreversible time. Unambiguous dominance is indicated by the second or the third order dominance tests for eight among the remaining twentyone comparisons. The results also indicate that contrary to the earlier widely held perceptions, faster rate of economic growth in India in the 1980s was associated with more equitable distributional outcomes in comparison with those associated with the slower growth in the 1970s.

JEL-codes: D63 O40 (search for similar items in EconPapers)
Date: 1995
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