India: Is the Rising Tide Lifting All Boats?

 
Author/Editor: Topalova, Petia
 
Publication Date: March 01, 2008
 
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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: While many have celebrated India's accelerating economic growth, some have expressed concern about the distributional impacts of the growth process. Cognizant of the vulnerability of its large population below poverty, India's authorities have made faster and more inclusive economic growth the primary goal of their development strategy. This paper aims to document how the benefits of economic expansion were shared across the income distribution over the last two decades using disaggregate household level data. Experiences across Indian states suggest an important role for economic policy in shaping the inclusiveness of growth. States with higher financial development, more flexible labor markets, and higher average education experienced greater relative gains for the poor. Improving infrastructure may also lead to a growth process that is more inclusive of the poor.
 
Series: Working Paper No. 08/54
Subject(s): Poverty | India | Economic growth | Income distribution | Labor markets | Poverty reduction

Author's Keyword(s): Poverty | inequality | inclusive growth | India
 
English
Publication Date: March 01, 2008
Format: Paper
Stock No: WPIEA2008054 Pages: 29
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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