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Convergence across Indian States: Cross-Sectional and Panel Estimations

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  • Tushar Kanti Das

    (Department of Business Administration, Sambalpur University, Sambalpur, Orissa Email: tushark_das@yahoo.com [or] tushar_1@go.com)

Abstract

Convergence refers to the process by which poorer countries or regions grow faster than their rich counterparts. Regional wage rate per capita converged across Indian states between 1956-57 to 1992-93. The rate of convergence can be ex plained by a direct measurement of convergence, an indirect measurement of convergence, and panel data estimation. Again, wage rates (or factor prices) are taken as the source of convergence rather than per capita income. This is because factor prices are far more useful in accessing the sources of convergence than NSDP aggregates, as well as the fact that they have a more relevant influence on economic policy. Convergence with respect to factor prices implies that the gap in the average workers' living standard between rich and poor states falls over time.

Suggested Citation

  • Tushar Kanti Das, 2002. "Convergence across Indian States: Cross-Sectional and Panel Estimations," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 3(2), pages 227-239, September.
    • Handle: RePEc:sae:soueco:v:3:y:2002:i:2:p:227-239
    DOI: 10.1177/139156140200300207
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    References listed on IDEAS

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    Cited by:

    1. Michael L. Polemis & Panagiotis Fotis & Panayiotis G. Tzeremes & Nickolaos G. Tzeremes, 2022. "On the examination of the decoupling effect of air pollutants from economic growth: a convergence analysis for the US," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 691-707, December.
    2. Rasika P. Chikte, 2011. "Income Convergence and Regional Growth in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 12(2), pages 239-269, September.
    3. mallick, Jagannath, 2016. "Investigating the Relationship of Disparity in Income, Private investment and wage rate in Indian states: A Panel Cointegration Approach," MPRA Paper 87736, University Library of Munich, Germany, revised 09 Aug 2017.

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