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Growth Convergence and Spillovers among Indian States: What Matters? What Does Not?
Author: Piyaporn Sodsriwiboon and Sanjay Kalra
Series:
IMF Working Papers
Volume/Issue:
Volume 2010: Issue 096
Language:
English
Publication Date:
01 Apr 2010
DOI:
https://doi.org/10.5089/9781451982732.001
ISBN:
9781451982732
ISSN:
1018-5941
Pages:
34
Keywords:
WP; low income; growth rate
Legal-disclaimer:
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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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund