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

_IMF Working Papers, April 1, 2010_

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**Canonical URL:** [Growth Convergence and Spillovers among Indian States: What Matters? What Does Not?](https://www.imf.org/en/publications/wp/issues/2016/12/31/growth-convergence-and-spillovers-among-indian-states-what-matters-what-does-not-23791)

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## Bibliographic details
- Authors: Piyaporn Sodsriwiboon, Sanjay Kalra
- Published: April 1, 2010
- Series: IMF Working Papers

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### 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

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/growth-convergence-and-spillovers-among-indian-states-what-matters-what-does-not-23791_