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

Author/Editor:

Piyaporn Sodsriwiboon ; Sanjay Kalra

Publication Date:

April 1, 2010

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

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.

Series:

Working Paper No. 2010/096

Subject:

English

Publication Date:

April 1, 2010

ISBN/ISSN:

9781451982732/1018-5941

Stock No:

WPIEA2010096

Pages:

34

Please address any questions about this title to publications@imf.org