Interrelationship Between Poverty, Growth, and Inequality in India: A Spatial Approach

Sandip Sarkar () and Samarjit Das
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Sandip Sarkar: Centre for Studies in Social Sciences
Samarjit Das: Indian Statistical Institute

A chapter in Advances in Growth Curve and Structural Equation Modeling, 2018, pp 77-99 from Springer

Abstract: Abstract The paper studies on the mechanism of poverty, growth, and inequality in India, in a spatial framework. A balanced panel data set, from five consecutive National Sample Survey Office (NSSO) rounds, has been constructed. The state regions are NSSO stratum and are combinations of different districts of a state of India. We consider a parametric approach that considers not only growth and inequality but also their interactions in the poverty estimation equation. Since the state regions used for this analysis are based on fixed boundaries, and constitution of India allows free movement of citizens, we have also controlled different kinds of spatial dependencies in the model. It has been observed that as a result of increment of poverty of a region, the neighboring state regions’ poverty also increases. This is possible due to migration. Our empirical findings also suggest a possible higher number of migrants which are belonging to the class of richer poor. We find as a result of growth poverty reduces but increases due to economic inequality. The policy variables play an important role in the poverty estimation equation and the signs of the coefficient are also appropriate. Several spatially transformed variables that has been incorporated in the poverty estimation equation are found to be statistically significant.

Keywords: Poverty; Growth; Inequality; Spatial approach; India (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-13-1843-6_5

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DOI: 10.1007/978-981-13-1843-6_5

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