291
Views
0
CrossRef citations to date
0
Altmetric
Research Articles

Income convergence of Indian states in the post-reform period: evidence from panel stationarity tests with smooth structural breaks

ORCID Icon, ORCID Icon, ORCID Icon & ORCID Icon

References

  • Agarwalla, A., and P. Pangotra. 2011. “Regional Income Disparities in India and Test for Convergence–1980 to 2006.” Working Paper No. 2011-01-04. Ahmedabad, India: Indian Institute of Management. 
  • Ahluwalia, M. 2002. “State Level Performance under Economic Reforms in India.” In Economic Policy Reforms and the Indian Economy, edited by A. Krueger. pp. 143-169. Chicago: University of Chicago Press.
  • Aiyar, S. 2001. “Growth Theory and Convergence across Indian States: A Panel Study.” In India at the Crossroads: Sustaining Growth and Reducing Poverty, edited by T. Callen, P. Reynolds, and C. Towe, Chapter 8. pp. 426-450. Cambridge: International Monetary Fund.
  • Bai, J., and S. Ng. 2005. “A New Look at Panel Testing of Stationarity and the PPP Hypothesis.” In Identification and Inference in Econometric Models. Essays in Honor of Thomas L. Rothenberg. 25 pp. Cambridge: Cambridge University Press.
  • Bajpai, N., and J. D. Sachs. 1996. “Trends in Inter-State Inequalities of Income in India.” Development Discussion Paper No. 528. Cambridge, MA: Harvard Institute for International Development, Harvard University.
  • Banerjee, A., and L. Iyer. 2005. “History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India.” American Economic Review 95 (4): 1190–1213. doi:10.1257/0002828054825574.
  • Becker, R., W. Enders, and J. Lee. 2006. “A Stationarity Test in the Presence of an Unknown Number of Smooth Breaks.” Journal of Time Series Analysis 27 (3): 381–409. doi:10.1111/j.1467-9892.2006.00478.x.
  • Breusch, T. S., and A. R. Pagan. 1980. “The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics.” The Review of Economic Studies 47 (1): 239–253. doi:10.2307/2297111.
  • Cashin, P., and R. Sahay. 1996. “Internal Migration, Center-State Grants, and Economic Growth in the States of India.” Staff Papers - International Monetary Fund 43 (1): 123–171. doi:10.2307/3867355.
  • Carlino, G. A., and L. O. Mills. 1993. “Are US Regional Incomes Converging? A Time Series Analysis.” Journal of Monetary Economics 32 (2): 335–346. doi:10.1016/0304-3932(93)90009-5.
  • Carrion-I-Silvestre, J. L., T. Del Barrio-Castro, and E. Lopez-Bazo. 2005. “Breaking the Panels: An Application to GDP per Capita.” Econometrics Journal 8: 159–175.
  • Chakraborty, L., and P. Chakraborty. 2018. “Federalism, Fiscal Asymmetries and Economic Convergence: Evidence from Indian States.” Asia-Pacific Journal of Regional Science 2 (1): 83–113. doi:10.1007/s41685-018-0087-z.
  • Cherodian, R., and A. P. Thirlwall. 2015. “Regional Disparities in per Capita Income in India: Convergence or Divergence?” Journal of Post Keynesian Economics 37 (3): 384–407. doi:10.1080/01603477.2015.1000109.
  • Cheung, Y.-W., and A. G. Pascual. 2004. “Testing for Output Convergence: A Re-Examination.” Oxford Economic Papers 56 (1): 45–63. doi:10.1093/oep/56.1.45.
  • Chikte, R. P. 2011. “Income Convergence and Regional Growth in India: Before and after the Economic Liberalization.” South Asia Economic Journal 12 (2): 239–269. doi:10.1177/139156141101200203.
  • CRISIL. 2018. “CRISIL Inclusix Financial Inclusion Surges, Driven by Jan-Dhan Yojana.” https://www.crisil.com/en/home/our-analysis/reports/2018/02/crisil-inclusix-financial-inclusion-surges-driven-by-Jan-Dhan-yojana.html
  • Das, S. 2012. “The Convergence Debate and Econometric Approaches: Evidence from India.” In The Oxford Handbook of the Indian Economy, edited by C. Ghate. pp. 766-784. New York: Oxford University Press.
  • Dasgupta, D., P. Maiti, R. Mukherjee, S. Sarkar, and S. Chakrabarti. 2000. “Growth and Interstate Disparities in India.” Economic and Political Weekly 35 (27): 2413–2422.
  • Enders, W., and J. Lee. 2012a. “A Unit Root Test Using a Fourier Series to Approximate Smooth Breaks.” Oxford Bulletin of Economics and Statistics 74 (4): 574–599. doi:10.1111/j.1468-0084.2011.00662.x.
  • Enders, W., and J. Lee. 2012b. “The Flexible Fourier Form and Dickey-Fuller Type Unit Root Tests.” Economics Letters 117 (1): 196–199. doi:10.1016/j.econlet.2012.04.081.
  • Ganguly, S., and R. Mukherji. 2011. India since 1980. Cambridge: Cambridge University Press.
  • Ghosh, M., A. Ghoshray, and I. Malki. 2013. “Regional Divergence and Club Convergence in India.” Economic Modelling 30: 733–742. doi:10.1016/j.econmod.2012.10.008.
  • GoI. 2014. “Evaluation Study of Backward Regions Grant Fund (BRGF).” Programme Evaluation Organisation, PEO Report No. 223. New Delhi, India: Planning Commission, Government of India.
  • Hadri, K. 2000. “Testing for Unit Roots in Heterogeneous Panel Data.” The Econometrics Journal 3 (2): 148–161. doi:10.1111/1368-423X.00043.
  • Kalita, M., and A. Tiwari. 2012. “Testing Income Convergence: Evidence from Indian States Using Panel Linear and Nonlinear Unit Root Tests.” The Economic Research Guardian 2 (1): 60–69.
  • King, A., and C. Ramlogan-Dobson. 2014. “Are Income Differences within the OECD Diminishing? Evidence from Fourier Unit Root Tests.” Studies in Nonlinear Dynamics & Econometrics 18 (2): 185–199. doi:10.1515/snde-2013-0008.
  • Kwiatkowski, D., P. C. B. Phillips, P. Schmidt, and Y. Shin. 1992. “Testing the Null Hypothesis of Stationary against the Alternative of a Unit Root.” Journal of Econometrics 54 (1-3): 159–178. doi:10.1016/0304-4076(92)90104-Y.
  • Mallick, J. 2014. “Regional Convergence of Economic Growth during Post-Reform Period in India.” The Singapore Economic Review 59 (02): 1450012–1450018. doi:10.1142/S021759081450012X.
  • Mishra, A., and V. Mishra. 2018. “Re-Examination of Convergence Hypothesis among Indian States in Panel Stationarity Testing Framework with Structural Breaks.” Applied Economics 50 (3): 268–286. doi:10.1080/00036846.2017.1319559.
  • Misra, B. S. 2007. Regional Growth Dynamics in India in the Post-Economic Reforms Period. London: Palgrave Macmillan.
  • Misra, B. S. 2013. Revisiting Regional Growth Dynamics in India in the Post-Economic Reforms Period. London: Palgrave Macmillan.
  • Misra, B. S. 2020. “Determinants of Total Factor Productivity in Indian States.” Indian Growth and Development Review 13 (1): 259–282. doi:10.1108/IGDR-01-2019-0008.
  • Misra, B. S. 2021. “Impact of Re-Election on Development in India: A Comparative Analysis of Leading and Lagging States.” Indian Growth and Development Review 14 (3): 325–349. doi:10.1108/IGDR-11-2020-0156.
  • Mundle, S., S. Chowdhury, and S. Sikdar. 2016. “Governance Performance of Indian States 2001-02 and 2011-12.” NIPFP Working paper No. 164. New Delhi: NIPFP.
  • Nagaraj, R., A. Varoudakis, and M.-A. Véganzonès. 2000. “Long-Run Growth Trends and Convergence across Indian States.” Journal of International Development 12 (1): 45–70. doi:10.1002/(SICI)1099-1328(200001)12:1<45::AID-JID586>3.0.CO;2-Z.
  • Nazlioglu, S., and C. Karul. 2017. “A Panel Stationarity Test with Gradual Structural Shifts: Re-Investigate the International Commodity Price Shocks.” Economic Modelling 61: 181–192. doi:10.1016/j.econmod.2016.12.003.
  • Pandey, P. 2010. “Service Delivery and Corruption in Public Services: How Does History Matter?” American Economic Journal: Applied Economics 2 (3): 190–204.
  • Pesaran, M. H., A. Ullah, and T. Yamagata. 2008. “A Bias-Adjusted LM Test of Error Cross-Section Independence.” The Econometrics Journal 11 (1): 105–127. doi:10.1111/j.1368-423X.2007.00227.x.
  • Phillips, P. C., and D. Sul. 2007. “Transition Modeling and Econometric Convergence Tests.” Econometrica 75 (6): 1771–1855. doi:10.1111/j.1468-0262.2007.00811.x.
  • Purfield, C. 2006. “Mind the Gap: Is Economic Growth in India Leaving the Poor States behind?” Working Paper No. WP/06/103. Washington, DC: IMF. doi:10.5089/9781451863635.001.
  • Rao, M. G., R. T. Shand, and K. P. Kalirajan. 1999. “Convergence of Income across Indian States: A Divergent View.” Economic and Political Weekly 34 (13): 769–778.
  • Rodrigues, P., and A. M. R. Taylor. 2012. “The Flexible Fourier Form and Local GLS De-Trending Unit Root Tests.” Oxford Bulletin of Economics and Statistics 74 (5): 736–759. doi:10.1111/j.1468-0084.2011.00665.x.
  • Sachs, J., N. Bajpai, and A. Ramiah. 2002. “Understanding Regional Economic Growth in India.” Asian Economic Papers 1 (3): 32–62. doi:10.1162/153535102320893983.
  • Singh, N., and T. N. Srinivasan. 2002. “Indian Federalism, Economic Reform and Globalization.” UC Santa Cruz Center for International Economics Working Paper No. 02–13.
  • Strazicich, M. C., J. Lee, and E. Day. 2004. “Are Incomes Converging among OECD Countries? Time Series Evidence with Two Structural Breaks.” Journal of Macroeconomics 26 (1): 131–145. doi:10.1016/j.jmacro.2002.11.001.
  • Sul, D., P. C. B. Phillips, and C.-Y. Choi. 2005. “Prewhitening Bias in HAC Estimation.” Oxford Bulletin of Economics and Statistics 67 (4): 517–546. doi:10.1111/j.1468-0084.2005.00130.x.
  • Trivedi, K. 2002. Regional Convergence and Catch-up in India between 1960 and 1992. New York: University of Oxford University Press.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.