EconPapers    
Economics at your fingertips  
 

An Empirical Inquiry into Per Capita Convergence of Indian States

Subaran Roy, Chitrakalpa Sen and Rohini Sanyal

Global Journal of Emerging Market Economies, 2019, vol. 11, issue 3, 232-247

Abstract: The topic of growth convergence (or the lack of it) has always been one of the most important economic phenomena for Indian states. This study undertakes more than 3 decades of data for Indian states from the 1980s and traces convergence of state-level per capita income; breaking the data down into the subperiods based on time and levels of income using panel unit root tests. The results show no discernible evidence of convergence across the states, especially after post-liberalization. However, taking into account control variables for capital expenditure, development expenditure, and fiscal deficit, we find significant evidence for convergence of state-level per capita GDP. This indicates that the nature of inequality across states is not structural in nature and can be reduced through active policy interventions.

Keywords: Economic growth; per capita state domestic product; growth convergence; inequality (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0974910119887245 (text/html)

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: https://EconPapers.repec.org/RePEc:sae:emeeco:v:11:y:2019:i:3:p:232-247

DOI: 10.1177/0974910119887245

Access Statistics for this article

More articles in Global Journal of Emerging Market Economies from Emerging Markets Forum
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2020-04-05
Handle: RePEc:sae:emeeco:v:11:y:2019:i:3:p:232-247