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Twin Peaks: Convergence Empirics of Economic Growth across Indian States

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  • Sanghamitra Bandyopadhyay

Abstract

This paper documents the convergence of incomes across Indian states over the period 1965 to 1998. It departs from traditional analyses of convergence by tracking the evolution of the entire income distribution, instead of standard regression and time series analyses. The findings reveal twin-peaks dynamics—the existence of two income convergence clubs, one at 50 per cent, another at 125 per cent of the national average income. Income disparities seem to have declined over the sixties, only to increase over the following three decades.

Suggested Citation

  • Sanghamitra Bandyopadhyay, 2001. "Twin Peaks: Convergence Empirics of Economic Growth across Indian States," WIDER Working Paper Series DP2001-142, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:dp2001-142
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    Cited by:

    1. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
    2. Sulekha Hembram & Sushil Kr. Haldar, 2019. "Beta, sigma and club convergence: Indian experience from 1980 to 2015," Indian Economic Review, Springer, vol. 54(2), pages 343-366, December.
    3. Sulekha Hembram & Sohini Mukherjee & Sushil Kr. Haldar, 2020. "Regional convergence of social and economic development in the districts of West Bengal, India: Do clubs exist? Does space matter? An empirical analysis using DLHS I–IV and NFHS IV data," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(1), pages 58-90, June.
    4. Martin Ravallion, 2011. "A Comparative Perspective on Poverty Reduction in Brazil, China, and India," The World Bank Research Observer, World Bank, vol. 26(1), pages 71-104, February.
    5. Bandyopadhyay, Sanghamitra, 2012. "Convergence clubs in incomes across Indian states: Is there evidence of a neighbours’ effect?," Economics Letters, Elsevier, vol. 116(3), pages 565-570.
    6. Falko Juessen, 2009. "A distribution dynamics approach to regional GDP convergence in unified Germany," Empirical Economics, Springer, vol. 37(3), pages 627-652, December.
    7. Aparna P Lolayekar & Pranab Mukhopadhyay, 2020. "“Understanding growth convergence in India (1981–2010): Looking beyond the usual suspects”," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-17, June.
    8. Kamakshya Trivedi, 2002. "Regional Convergence and Catch-up in India between 1960 and 1992," Economics Series Working Papers 2003-W01, University of Oxford, Department of Economics.
    9. Falko Juessen, 2005. "A distribution dynamics approach to regional income convergence in reunified Germany," ERSA conference papers ersa05p411, European Regional Science Association.
    10. Sanghamitra Bandyopadhyay, 2016. "The persistence of inequality across Indian states," CSAE Working Paper Series 2016-26, Centre for the Study of African Economies, University of Oxford.
    11. Kamakshya Trivedi, "undated". "Regional Convergence and Catch-up in India between 1960 and 1992," Economics Papers 2003-W01, Economics Group, Nuffield College, University of Oxford.

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