Economics at your fingertips  

Do growth-promoting factors induce income inequality in a transitioning large developing economy? An empirical evidence from Indian states

Amit Nandan and Hrushikesh Mallick ()
Additional contact information
Hrushikesh Mallick: Centre for Development Studies (CDS)

Economic Change and Restructuring, 2022, vol. 55, issue 2, No 20, 1109-1139

Abstract: Abstract We examine the role of the enforcement of property rights, human capital formation, and the efficiency of various components of state governments' developmental expenditure on states’ economic growth and interstate income inequality. Together with private sector investment in rural areas, property rights enforcement, human capital, government expenditures on economic services, and health and education are found to have positive effects on states’ growth. We also observe that the interstate difference in the provisioning of government economic services is the leading factor in contributing to interstate income divergence in India. These findings can serve as vital technical inputs for formulating economic policies to achieve faster economic growth and mitigate regional income inequality in transitioning developing economies like India and hold greater relevance for other developing economies on their way to experiencing similar social and economic transitions.

Keywords: Public expenditure; Human capital; Private property rights; Growth; Income inequality (search for similar items in EconPapers)
JEL-codes: H4 I25 K11 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

DOI: 10.1007/s10644-021-09340-w

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2022-09-04
Handle: RePEc:kap:ecopln:v:55:y:2022:i:2:d:10.1007_s10644-021-09340-w