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Economic Reforms, Growth and Regional Divergence in India

Author

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  • Madhusudan Ghosh

    (Madhusudan Ghosh is a Professor of Economics, Department of Economics & Politics, Visva-Bharati University, Shantiniketan, West Bengal 731235; e-mail: msghosh123@rediffmail.com; ghosh_m55@yahoo.co.in)

Abstract

This paper examines long-run growth performance and regional divergence in per capita income across 15 major Indian states during the pre- and post-reform periods. Evidence shows that the divergence has increased the post-reform period. The divergence has been due to inter-state variations in production structures, human capital and infrastructure. Larger public investment in human capital and infrastructure for states with lower steady-state could improve overall growth performance and reduce regional imbalances. Ongoing economic reforms that seem to have led to an increase in growth as well as regional disparities of income need to be modified appropriately.

Suggested Citation

  • Madhusudan Ghosh, 2008. "Economic Reforms, Growth and Regional Divergence in India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 2(3), pages 265-285, August.
    • Handle: RePEc:sae:mareco:v:2:y:2008:i:3:p:265-285
    DOI: 10.1177/097380100800200303
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    Cited by:

    1. Ghosh, Madhusudan & Ghoshray, Atanu & Malki, Issam, 2013. "Regional divergence and club convergence in India," Economic Modelling, Elsevier, vol. 30(C), pages 733-742.
    2. 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.
    3. Kennedy, Loraine & Robin, Kim & Zamuner, Diego, 2013. "Comparing State-level policy responses to economic reforms in India," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 13.
    4. Lessmann, Christian & Seidel, André, 2017. "Regional inequality, convergence, and its determinants – A view from outer space," European Economic Review, Elsevier, vol. 92(C), pages 110-132.
    5. Biswajit Mohanty & N. R. Bhanumurthy, 2018. "Regional growth policy experience in India: the spatial dimension," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 479-505, August.
    6. Reena Kumari, 2016. "Regional disparity in Uttar Pradesh and Bihar: a disaggregated level analysis," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 121-146, October.
    7. Ankita Mishra & Vinod Mishra, 2018. "Re-examination of convergence hypothesis among Indian states in panel stationarity testing framework with structural breaks," Applied Economics, Taylor & Francis Journals, vol. 50(3), pages 268-286, January.
    8. Nitin Aroa, 2013. "Testing of Technical Efficiency Catching-up in Indian Sugar Industry: A Longitudinal Analysis of Sugar Producing States," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 2, pages 1-1, December.

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    More about this item

    Keywords

    Convergence; Economic Reforms; Growth; Unit-root; JEL Classification: C22; JEL Classification: O11; JEL Classification: O47; JEL Classification: O53;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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