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Examining The Interlinkages Between Regional Infrastructure Disparities, Economic Growth, And Poverty: A Case Of Indian States

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  • Varun Chotia
  • NV Muralidhar Rao

Abstract

This paper investigates the interlinkages between regional infrastructure disparities, economic growth, and poverty in the 21 major Indian States. An overall comprehensive index of infrastructure, the Composite Infrastructure Index (CII), is calculated for each Indian state using the Principal Component Analysis technique. In order to analyse the regional disparities between states in terms of infrastructure, they are ranked based on the calculated CII. We extend our analysis by evaluating the inter-relationship between the Composite Infrastructure Index, Per Capita Net State Domestic Product (PCNSDP), and poverty. The empirical analysis also proves that composite infrastructural growth and economic growth go hand in hand.

Suggested Citation

  • Varun Chotia & NV Muralidhar Rao, 2015. "Examining The Interlinkages Between Regional Infrastructure Disparities, Economic Growth, And Poverty: A Case Of Indian States," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 60(205), pages 53-72, April – J.
    • Handle: RePEc:beo:journl:v:60:y:2015:i:205:p:53-72
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    Citations

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    Cited by:

    1. Bhattacharya, Rudrani & Sen Gupta, Abhijit & Sikdar, Satadru, 2020. "Building Infrastructure to Promote Inclusive Growth," Working Papers 20/321, National Institute of Public Finance and Policy.
    2. Nitika Mundetia & Devesh Sharma & Swatantra Kumar Dubey & Madhu Priya, 2018. "Development and Poverty Assessment Using an Alternate Non-compensatory Composite Index of Rajasthan State in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(1), pages 1-34, November.
    3. Desalegn Ambaw & Solomon Nigussie, 2021. "The Impacts Of Institutional Capacity, Infrastructure Governance And Equity On State-And-Nation-Building Processes In Ethiopia," Management Theory and Studies for Rural Business and Infrastructure Development, Sciendo, vol. 43(4), pages 484-499, December.
    4. Nisha S. Simon & P. Natarajan, 2017. "Nonlinearity between Infrastructure Inequality and Growth," Review of Market Integration, India Development Foundation, vol. 9(1-2), pages 66-82, April.
    5. Ambaw Desalegn & Nigussie Solomon, 2022. "The Interrelationship among Institutional Capacity, Infrastructure Governance and Equity, and Nation-Building Process in Ethiopia," Public Organization Review, Springer, vol. 22(3), pages 627-647, September.

    More about this item

    Keywords

    Health; Education; Infrastructure; Composite Infrastructure Index; Principal Component Analysis;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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