Growth Convergence and Spillovers among Indian States: What Matters? What Does Not?
IMF Working Papers, April 1, 2010
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- Growth Convergence and Spillovers among Indian States: What Matters? What Does Not?
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Bibliographic details
- Authors: Piyaporn Sodsriwiboon, Sanjay Kalra
- Published: April 1, 2010
- Series: IMF Working Papers
Summary
- Paper examines convergence and spillovers across Indian states using non-stationary panel data techniques.
- Results are generally similar, but more nuanced, than previous studies.
- Key empirical patterns:
- Evidence of divergence over the entire sample period.
- Convergence during sub-periods corresponding to structural breaks.
- Club convergence is present.
- Strong evidence of club convergence among the high- and low-income states; evidence for middle-income states is mixed.
- Dynamic spillover effects among states are small.
Major Findings
- Convergence dynamics:
- Divergence over the entire sample period.
- Convergence in identified sub-periods that correspond to structural breaks.
- Club convergence: distinct convergence clubs are observed rather than uniform convergence across all states.
- High-income states: strong evidence of club convergence.
- Low-income states: strong evidence of club convergence.
- Middle-income states: mixed evidence on club convergence.
- Spillovers:
- Dynamic spillover effects among states are small.
Methodology (as described)
- Uses non-stationary panel data techniques to assess convergence and spillovers across Indian states.
Subject Areas and Keywords
- Subject: Infrastructure, Personal income, Private investment, Services sector, Spillovers
- Keywords: growth rate, low income, WP
Content in this bundle
- _wp1096 - References