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State Heterogeneity, Redistributive Policy and Pro-Poor Growth: Evidence from India with a special reference to Education

Amartya Paul ()
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Amartya Paul: BASE University, Bengaluru

BASE University Working Papers from BASE University, Bengaluru, India

Abstract: Does redistributive policy make economic growth pro-poor? We investigate this for India by using a set of axiomatic pro-poor growth indices and deprivation measures that are computed using nationally representative sample survey data from 1983 to 2011-12. Estimation using a linear panel shows that redistributive policies have a positive and significant impact on pro-poor growth, and a negative impact on poverty. The results are consistent irrespective of the initial conditions of the state, across income groups and for an alternative measure. An endogenously determined threshold level of education, estimated from a non-linear threshold panel model reveals that policy impacts are asymmetric for states that have attained a minimum threshold level of education

Keywords: Pro-poor growth; Redistributive Policy; Education; Threshold Panel; India (search for similar items in EconPapers)
Pages: 57 pages
Date: 2022-07
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