Chapter 8 Convergence Club Empirics: Evidence from Indian States

Sanghamitra Bandyopadhyay

A chapter in Inequality, Mobility and Segregation: Essays in Honor of Jacques Silber, 2012, pp 175-203 from Emerald Group Publishing Limited

Abstract: The distribution dynamics of incomes across Indian states are examined using the entire income distribution. Unlike standard regression approaches, this approach allows us to identify specific distributional characteristics such as polarisation and stratification. The period between 1965 and 1997 exhibits the formation of two convergence clubs: one at 50% and another at 125% of the national average income. Income disparities across the states declined over the sixties and then increased from the seventies to the nineties. Conditioning exercises reveal that the formation of the convergence clubs is associated with the disparate distribution of macro-economic factors such as capital expenditure and fiscal deficits. In particular, capital expenditure, fiscal deficits and education expenditures are found to be associated with the formation of the upper convergence club.

Keywords: Convergence clubs; distribution dynamics; fiscal deficits; capital expenditure; panel data; India (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
https://www.emerald.com/insight/content/doi/10.110 ... 2585(2012)0000020011
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:eme:reinzz:s1049-2585(2012)0000020011

DOI: 10.1108/S1049-2585(2012)0000020011

Access Statistics for this chapter

More chapters in Research on Economic Inequality from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().