Regional Inequality of West Bengal: A District Level Study

Saurav Kumar Dey
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Saurav Kumar Dey: Research Scholar,, Postal: NIT-Durgapur, West Bengal,India.,

Bangladesh Development Studies, 2015, vol. 38, issue 01, 101-117

Abstract: This paper examines the inequality and convergence of districts of West Bengal using the neo-classical convergence theory. The district domestic product (DDP) has been used to understand the regional inequality pattern and convergence among the 18 districts of West Bengal. The estimated σ-convergence and unconditional β-convergence reveal uneven growth among the districts. The σ-convergence measured in terms of log SD and CV shows rising trend during the study period. The dispersion amongst districts, measured in terms of log standard deviation of per capita income, increased from 7.54 in 1993-94 to 8.87 in 2007-08. The estimated result of unconditional β-convergence also supports the hypothesis that rich districts grow faster than the poor ones. The positive and significant correlation coefficient between gross DDP and various socioeconomic variables also support economic reasoning that districts with higher per capita income have higher level of urbanization, literacy, banking infrastructure, per capita bank advances, number of MSMEs and employment in MSMEs. For reversing the tendency of divergence, backward districts have to be developed, especially through developing social and physical infrastructure.

Keywords: Growth; Inequality; Convergence (search for similar items in EconPapers)
JEL-codes: D63 O47 R11 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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