Productivity growth convergence across Indian states: a spatial dynamic panel analysis

Chhavi Tiwari, Sankalpa Bhattacharjee, Pradeepta Sethi and Debkumar Chakrabarti

Journal of the Asia Pacific Economy, 2024, vol. 29, issue 3, 1138-1164

Abstract: The study re-examines convergence among Indian states by estimating their total factor productivity (TFP) for the period 1990/91–2018/19. The novelty of the study is the decomposition of TFP change into efficiency change and technological change using the Malmquist index in a spatial dependence framework to test convergence. Findings reveal that, on average, productivity increased at an aggregate level for the entire period on account of the impressive growth of technological innovation. However, technological growth convergence could not lead to productivity growth convergence in the second sub-period because of no convergence in efficiency growth. Alongside, while we witness significant spatial spillovers in both technology and efficiency, convergence was observed only with respect to technology growth in the second sub-period. The congruence of technological convergence and significant spatial spillovers indicates that while states may be converging in technology, they do not do so independently but display movements similar to their regional neighbours.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13547860.2022.2143644 (text/html)
Access to full text is restricted to subscribers.

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:taf:rjapxx:v:29:y:2024:i:3:p:1138-1164

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjap20

DOI: 10.1080/13547860.2022.2143644

Access Statistics for this article

Journal of the Asia Pacific Economy is currently edited by Leong Liew

More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().