IDEAS home Printed from https://ideas.repec.org/h/spr/isbchp/978-81-322-1650-6_19.html
   My bibliography  Save this book chapter

Infrastructure Development and Regional Growth in India

In: Analytical Issues in Trade, Development and Finance

Author

Listed:
  • Prakash Singh

    (Delhi University & ICSSR)

  • N. R. Bhanumurthy

    (National Institute of Public Finance and Policy)

Abstract

The present study attempts to understand the significance of variation in infrastructural (both physical and social) development in determining regional economic divergence in India. Preliminary analysis suggests that, at the cross-sectional level, there is a strong positive correlation between infrastructural development and level of state domestic product (SDP) growth in 15 major states. Further, this correlation only shows an increasing trend over a period of time. Presence of cointegration between both the infrastructural variables as well as SDP growth demonstrates the importance of infrastructure in promoting economic activity at the subnational level. Further, fully modified ordinary least square (FMOLS) result supports the importance of infrastructure variable on SDP. However, it also suggests that between the two, social infrastructure development was found to have greater impact on SDP growth. Finally, Granger causality results indicate the presence of bidirectional causation between SDP growth and infrastructure with a stronger causation running from social infrastructure to SDP growth than vice versa. Overall, the chapter concludes that unequal infrastructure endowment could be one of the drivers of growth divergence in India. It calls for higher investments on infrastructure, in particular in social infrastructure, if India has to achieve faster and inclusive growth in the medium to long term.

Suggested Citation

  • Prakash Singh & N. R. Bhanumurthy, 2014. "Infrastructure Development and Regional Growth in India," India Studies in Business and Economics, in: Ambar Nath Ghosh & Asim K. Karmakar (ed.), Analytical Issues in Trade, Development and Finance, edition 127, chapter 19, pages 321-341, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-1650-6_19
    DOI: 10.1007/978-81-322-1650-6_19
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Faroque Ahmed & Md. Jamal Hossain & Mohammad Tareque, 2020. "Investigating the Roles of Physical Infrastructure, Financial Development and Human Capital on Economic Growth in Bangladesh," Journal of Infrastructure Development, India Development Foundation, vol. 12(2), pages 154-175, December.
    2. Sharif, Arshian & Shahbaz, Muhammad & Hille, Erik, 2019. "The Transportation-growth nexus in USA: Fresh insights from pre-post global crisis period," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 108-121.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:isbchp:978-81-322-1650-6_19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.