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Is India Shining?

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  • Anurag Banerjee
  • Nilanjan Banik

Abstract

The popular perception about economic reforms having benefitted only the richer districts of India between 1999/2000 and 2004/2005 is investigated. Using the spatial dynamics of district-level per-capita income it was found that income distribution did not change between the years examined. It is argued that this is because of per-capita income across districts being spatially positively correlated. Physical infrastructure, human capital, and factories are identified 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 analysis shows development of better drainage and potable water systems has a large impact on income. For the year 2001/02, it was found that for every 1% increase in closed drainage system and potable water, district-level median income increases by 1.39% and 0.21%, respectively.

Suggested Citation

  • Anurag Banerjee & Nilanjan Banik, 2014. "Is India Shining?," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 59-72, February.
    • Handle: RePEc:bla:rdevec:v:18:y:2014:i:1:p:59-72
    DOI: 10.1111/rode.12069
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    Cited by:

    1. Anurag N. Banerjee & Nilanjan Banik & Ashvika Dalmia, 2017. "Demand for household sanitation in India using NFHS-3 data," Empirical Economics, Springer, vol. 53(1), pages 307-327, August.
    2. Amrita Chatterjee & Shriya Agarwal, 2019. "Can Women Empowerment Help to Reduce Open Defecation in India: Evidence from NFHS 4," Working Papers 2019-186, Madras School of Economics,Chennai,India.

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    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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