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Is India Shining?

Anurag Banerjee () and Nilanjan Banik ()

No 2013_01, CEGAP Working Papers from Durham University Business School

Abstract: We investigate the popular perception about economic reforms having benefitted only the richer districts between 1999/2000 and 2004/2005. Using the spatial dynamics of district level per-capita income we found that income distribution did not change between the years examined. We argue that this is because of per-capita income across districts being spatially positively correlated. We identify physical infrastructure, human capital, and factories, as factors responsible for increase in income for both the rich as well as the poor districts. Infrastructure, physical or social, is a key component of growth in India. A policy impact an lysis shows development of better drainage and potable water systems has a large impact on income. For the year 2001/02, we find that for every 1 per cent increase in closed drainage system and potable water, district-level median income increases by 1.39 per cent and 0.21 per cent, respectively.

Keywords: Districts of India; Income; Neighbourhood effect; Spatial Analysis (search for similar items in EconPapers)
Date: 2013-01
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Journal Article: Is India Shining? (2014) Downloads
Working Paper: Is India Shining? (2011) Downloads
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