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Whither the Indian Federation? Regional Disparities and Economic Reforms

Michele Alessandrini, Tullio Buccellato and Pasquale Scaramozzino

MPRA Paper from University Library of Munich, Germany

Abstract: The last two decades have seen increased divergence among the states of the Indian Federation in terms of their economic performance. This paper uses spatial econometric methods to examine how the regional pattern of growth has been influenced by the economic reforms implemented since the early 1990s. The process of liberalization and increased openness to international markets has imparted a clear spatial connotation to the gap dividing low and fast growing states. Winners were those states that benefited the most from the recent process of reform and liberalization, thanks also to their geographical advantage and to the presence of a developed service sector. Losers were instead the landlocked and highly populated states with a predominant agricultural sector and a low level of innovation.

Keywords: India; Regional Convergence; Spatial Econometrics (search for similar items in EconPapers)
JEL-codes: O47 O53 C33 R11 (search for similar items in EconPapers)
Date: 2008-07
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