Remoteness and Unbalanced Growth: Understanding Divergence Across Indian Districts

Samarjit Das, Chetan Ghate and Peter Robertson
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Samarjit Das: Indian Statistical Institute, Kolkata

No 13-31, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: The existing literature on Indian growth finds no evidence of convergence across states. This represents a puzzle given the relatively free flows of capital, labor and commodities across state borders. We use a new data set of district level income and socio-economic data to explore the hypotheses of conditional convergence, using distance as a indicator of internal geographical trade and migration costs. We find evidence of conditional convergence for Indian districts but at a rate that is only half of Barro’s “Iron Law”. From a policy perspective the results suggest that infrastructure supply is critical for achieving a more balanced pattern of growth in India.

Pages: 39 pages
Date: 2013
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Citations: View citations in EconPapers (2)

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Working Paper: Remoteness and Unbalanced Growth: Understanding Divergence Across Indian Districts (2013)
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