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A Comparative Study of Inter-Regional Intra-Industry Disparity

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  • Samidh Pal

Abstract

This paper investigates the inter-regional intra-industry disparity within selected Indian manufacturing industries and industrial states. The study uses three measures - the Output-Capital Ratio, the Capital-Labor Ratio, and the Output-Labor Ratio - to critically evaluate the level of disparity in average efficiency of labor and capital, as well as capital intensity. Additionally, the paper compares the rate of disparity of per capita income between six major industrial states. The study finds that underutilization of capacity is driven by an unequal distribution of high-skilled labor supply and upgraded technologies. To address these disparities, the paper suggests that policymakers campaign for labor training and technology promotion schemes throughout all regions of India. By doing so, the study argues, the country can reduce regional inequality and improve economic outcomes for all.

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  • Samidh Pal, 2023. "A Comparative Study of Inter-Regional Intra-Industry Disparity," Papers 2304.02430, arXiv.org.
    • Handle: RePEc:arx:papers:2304.02430
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    References listed on IDEAS

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    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Carlos Gradín, 2018. "Explaining cross-state earnings inequality differentials in India: An RIF decomposition approach," WIDER Working Paper Series wp-2018-24, World Institute for Development Economic Research (UNU-WIDER).
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