Growth Convergence and Spillovers among Indian States: What Matters? What Does Not?

April 1, 2010

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Piyaporn Sodsriwiboon, and Sanjay Kalra. Growth Convergence and Spillovers among Indian States: What Matters? What Does Not?, (USA: International Monetary Fund, 2010) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Convergence and spillovers across countries and within countries are old, but recurrent policy concerns, and India is no exception to this rule. This paper examines convergence and spillovers across Indian states using non-stationary panel data techniques. Results on convergence among Indian states are generally found to be similar, but more nuanced, than previous studies. Generally speaking, there is evidence of divergence over the entire sample period, convergence during sub-periods corresponding to structural breaks, and club convergence. There is strong evidence of club convergence among the high- and low-income states; the evidence for middle-income states is mixed. Dynamic spillover effects among states are small.

Subject: Infrastructure, Personal income, Private investment, Services sector, Spillovers

Keywords: Growth rate, Low income, WP

Publication Details

Pages:

34
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2010/096
Stock No:

WPIEA2010096
ISBN:

9781451982732
ISSN:

1018-5941

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