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Internal Migration, Center-State Grants and Economic Growth in the States of India
Author:
Mr. Paul Cashin
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Ms. Ratna Sahay
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Series:
IMF Working Papers
Volume/Issue:
Volume 1995: Issue 066
Language:
English
Publication Date:
01 Jul 1995
DOI:
https://doi.org/10.5089/9781451848762.001
ISBN:
9781451848762
ISSN:
1018-5941
Pages:
56
Keywords:
WP; per capita income; center-State grant; least squares; cross-state migration calculation; closed economy; European OECD country; vital statistics; income elasticity; government of India; constant term; State income; rural-to-rural migration; elasticity of migration; Personal income; Migration; Public expenditure review; Disposable income; Europe
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper examines the growth experience of twenty states of India during the period 1961-91, using cross-sectional estimation and the analytical framework of the Solow-Swan neoclassical growth model. We find evidence of absolute convergence--initially-poor states did indeed grow faster than their initially-rich counterparts. There has also been a widening of the dispersion of real per capita state incomes over the period 1961-91. However, relatively more grants were transferred from the central government to the poor states than to their rich counterparts. Significant barriers to population flows also exist, as net migration from poor to rich states responded only weakly to cross-state income differentials.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund