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Growth interdependence among Indian states: an exploration

Author

Listed:
  • Shashanka Bhide

    (GRIPS-FASID Joint Graduate Programme, Tokyo, Japan)

  • Rajesh Chadha

    (GRIPS-FASID Joint Graduate Programme, Tokyo, Japan)

  • Kaliappa Kalirajan

    (GRIPS-FASID Joint Graduate Programme, Tokyo, Japan)

Abstract

The objectives of this paper are to test whether there are any significant trickling down effects of economic growth across the Indian states and to identify the factors influencing the existence of such effects. Using data from 1971 to 1998, and the standard statistical test of causality, this study suggests that the transmission of growth impulses across states have been limited. The results indicate that the structure of the economies, the growth rates of the states and the quality of state-specific institutions appear to raise the potential for significant trickle down growth effects across states.

Suggested Citation

  • Shashanka Bhide & Rajesh Chadha & Kaliappa Kalirajan, 2005. "Growth interdependence among Indian states: an exploration," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 12(2), pages 59-80, December.
    • Handle: RePEc:unt:jnapdj:v:12:y:2005:i:2:p:59-80
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    File URL: http://www.unescap.org/sites/default/files/apdj12-2-4-bhide.pdf
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    References listed on IDEAS

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    1. Jamasb, Tooraj & Llorca, Manuel & Khetrapal, Pavan & Thakur, Tripta, 2021. "Institutions and performance of regulated firms: Evidence from electricity distribution in India," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 68-82.
    2. Rittu Susan Varkey & Prasant Kumar Panda, 2018. "Inter-sectoral Growth Linkages and Their Implications for Agriculture: Evidence from Indian States," Millennial Asia, , vol. 9(3), pages 262-277, December.
    3. Hansa Jain, 2019. "Wage–Productivity Relationship in Indian Manufacturing Industries: Evidences from State-level Panel Data," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(3), pages 277-305, August.
    4. Tooraj Jamasb & Manuel Llorca & Pavan Khetrapal & Tripta Thakur, 2018. "Institutions and Performance of Regulated Firms: Evidence from Electric Utilities in the Indian States," Working Papers EPRG 1809, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    5. Rittu Susan Varkey & Prasant Kumar Panda, 2020. "Inter-state Growth Spillovers in Indian Major States: An Empirical Analysis," Jindal Journal of Business Research, , vol. 9(1), pages 7-17, June.
    6. Grabowski, Richard, 2009. "An alternative Indian model?," Journal of Asian Economics, Elsevier, vol. 20(1), pages 50-61, January.
    7. Alessandrini, Michele & Buccellato, Tullio & Scaramozzino, Pasquale, 2008. "Whither the Indian Federation? Regional Disparities and Economic Reforms," MPRA Paper 23416, University Library of Munich, Germany.
    8. Singh, Richa & Bhattacharjee, Sankalpa & Nandy, Amarendu, 2024. "Fiscal decentralization for the delivery of health and education in Indian states: An ongoing process is more desirable than a policy shift," Journal of Policy Modeling, Elsevier, vol. 46(2), pages 254-271.
    9. Bharatee Bhusana Dash & Sami Angara V. Raja, 2009. "Institutions and the quality of governance: an empirical study on interstate differences in economic development in India," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 16(1), pages 1-26, June.
    10. Shashanka Bhide, 2019. "Production Sectors and Regions in Macroeconometric Models of India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 711-725, December.

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