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Convergence Club Empirics: Some Dynamics and Explanations of Unequal Growth Across Indian States

Year: 2003

Type: book

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% of the national average income. Income disparities across states seem to have declined over the sixties, only to increase over the following three decades. The observed polarization is strongly explained by the disparate distribution of infrastructure, and that of education, and to an extent by a number of macroeconomic indicators, that of capital expenditure and fiscal deficits.

Source: London School of Economics and Political Science Research Online (London School of Economics and Political Science)

Author: Sanghamitra Bandyopadhyay

Institutions: Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science

Language: English

Topic: Economic Growth and Productivity

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Decent work and economic growth

Open Access status: green

Funders: London School of Economics and Political Science, Economic and Social Research Council

OpenAlex ID: W1535855387