publication . Preprint . 2006

Mind the Gap—Is Economic Growth in India Leaving Some States Behind?

Catriona Purfield;
Open Access
  • Published: 01 Apr 2006
Abstract
This paper examines how growth has varied across India's states. It finds that (i) the income gap between rich and poor states has widened; (ii) rich and faster-growing states have been more effective in reducing poverty; (iii) poor and slower-growing states have had little success in generating private sector jobs; (iv) labor and capital flows do little to close income gaps; and (v) the volatility in economic growth is greatest in poor states. Differences in states' policies affect the cross-state pattern of growth. Greater private sector investment, smaller governments, and better institutions are found to have a positive impact on growth.
Subjects
free text keywords: Regional, Urban, and Rural Analyses, Economic Growth and Aggregate Productivity: General, Economywide Country Studies: Asia including Middle East, [Economic growth;Economic reforms;Income distribution;India;Conversions, State Level Growth, employment, per capita income, growth rates, growth rate, General Outlook and Conditions, Economic Development]
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