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Growth Convergence and Regional Inequality in India (1981–2012)

Author

Listed:
  • Aparna Lolayekar

    (Dnyanprassarak Mandal’s College and Research Centre
    Goa University)

  • Pranab Mukhopadhyay

    (Goa University)

Abstract

There has been significant research effort to study the impact of liberalisation on growth and distribution in India. Using per capita income (PCI) data for the period 1981–82 to 2012–13 (28 regions for the entire period and 31 regions for 2001–2 to 2012–13) at the sub-national level in India we examine the claims of divergence and stratification (twin peak formation) as has been claimed in some of the recent literature. We confirm that there is divergence of PCI. We present the first set of tests of multimodality in the Indian convergence debate using Silverman (J R Stat Soc 43:97–99, 1981; Density estimation for statistics and data analysis. Monographs on statistics and applied probability, Chapman & Hall, London, 1986) procedure. Weighted kernel density plots and multi-modal tests reveal that there is emergence of “multi-modes” in the distribution of PCI, not just twin modes. The spatial pattern of growth reflects an area of stagnation in the eastern-central belt—Bihar, Madhya Pradesh, Uttar Pradesh and Orissa, and in the north eastern part of India—Assam and Manipur and a decline in Mizoram. Sikkim demonstrates fastest growth, whereas Gujarat, Haryana, Kerala, Maharashtra, Punjab, Tamil Nadu (among the big states) and Himachal Pradesh, and Andaman and Nicobar (small state and Union Territories) maintained their position. Karnataka, and Andhra Pradesh (among the southern states), Arunachal Pradesh and Nagaland (among the north eastern states) along with Jammu and Kashmir, Uttarakhand and Chhattisgarh, moved up in the growth ladder. The continuation of growth stagnation in most of the BIMARU states poses a challenge to received theories of growth convergence and raises developmental concerns that the increased play of market forces in the Indian economy have not been able to overcome.

Suggested Citation

  • Aparna Lolayekar & Pranab Mukhopadhyay, 2017. "Growth Convergence and Regional Inequality in India (1981–2012)," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 15(2), pages 307-328, June.
    • Handle: RePEc:spr:jqecon:v:15:y:2017:i:2:d:10.1007_s40953-016-0051-6
    DOI: 10.1007/s40953-016-0051-6
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    2. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2023. "The Influence of Investment, Energy Infrastructure, and Human Capital Towards Convergence of Regional Disparities in Sumatra Island, Indonesia; Using Oil and Gas Data and Without Oil and Gas," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 139-149, July.
    3. Chhavi Tiwari & Sankalpa Bhattacharjee & Debkumar Chakrabarti, 2020. "Investigating Regional Inequalities in India: Are Indian Districts Converging?," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(5), pages 684-716, July.
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    5. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2022. "Does Investment and Energy Infrastructure Influence Convergence in Sumatra Island, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 274-281, July.

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    More about this item

    Keywords

    Club convergence; India economic growth; Regional inequality;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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