Re-examination of convergence hypothesis among Indian states in panel stationarity testing framework with structural breaks

References

• Aiyar, S. 2001. “Growth Theory and Convergence across Indian States: A Panel Study.” In T. Callen, P. Reynolds and C. Towe (eds) India at Crossroads: Sustaining Growth and Reducing Poverty, 143–169. Washington: International Monetary Fund.
   Google Scholar
• Baddeley, M., K. McNay, and R. Cassen. 2006. “Divergence in India: Income Differentials at the State Level, 1970–97.” The Journal of Development Studies 42 (6): 1000–1022. doi:10.1080/00220380600774814.
   Web of Science ®Google Scholar
• Bai, J., and J. L. Carrion-i-Silvestre. 2009. “Structural Changes, Common Stochastic Trends, and Unit Roots in Panel Data.” Review of Economic Studies 76 (2): 471–501. doi:10.1111/j.1467-937X.2008.00530.x.
   Web of Science ®Google Scholar
• Bai, J., and P. Perron. 1998. “Estimating and Testing Linear Models with Multiple Structural Changes.” Econometrica, 66 : 47–78.
   Web of Science ®Google Scholar
• Bai, J., and S. Ng. 2004. “A Panic Attack on Unit Roots and Cointegration.” Econometrica 72 (4): 1127–1177. doi:10.1111/j.1468-0262.2004.00528.x.
   Web of Science ®Google Scholar
• Bajpai, N., and J. D. Sachs. 1999. “The progress of policy reforms and variations in performance at the sub-national level in India (HIID Development Discussion Paper No. 730)”. Cambridge, MA: Harvard Institute for International Development, Harvard University.
   Google Scholar
• Bandyopadhyay, S. 2011. “Rich States, Poor States: Convergence and Polarisation in India.” Scottish Journal of Political Economy 58 (3): 414–436. doi:10.1111/j.1467-9485.2011.00553.x.
   Web of Science ®Google Scholar
• Bandyopadhyay, S., and J. Luksic. 2015. “Spatial inequality and stochastic convergence in India: 1960-2011.” Paper presented at 6th ECINEQ Meeting, Université du Luxembourg, Campus Kirchberg, Luxembourg, July 13-15, 2015. Available online at: http://www.ecineq.org/ecineq_lux15/FILESx2015/CR2/p245.pdf [Date Accessed: 20 April 2017]
   Google Scholar
• Barro, R., and S. Martin. 1995. Economic Growth. Boston, MA : The MIT Press.
   Google Scholar
• Barro, R. J., and X. Sala-i-Martin. 1992. “Convergence.” Journal of Political Economy 100 (2): 223. doi:10.1086/261816.
   Web of Science ®Google Scholar
• Bernard, A. B., and S. N. Durlauf. 1995. “Convergence in International Output.” Journal of Applied Econometrics 10: 97–108. doi:10.1002/jae.3950100202.
   Web of Science ®Google Scholar
• Bernard, A. B., and S. N. Durlauf. 1996. “Interpreting Tests of the Convergence Hypothesis.” Journal of Econometrics 71 (1–2): 161–173. doi:10.1016/0304-4076(94)01699-2.
   Web of Science ®Google Scholar
• Bhattacharya, B. B., and S. Sakthivel. 2004. “Regional Growth and Disparity in India: Comparison of Pre- and Post-Reform Decades.” Economic and Political Weekly 39 (10): 1071–1077.
   Google Scholar
• Carlino, G. A., and L. O. Mills. 1993. “Are U.S. Regional Incomes Converging?” Journal of Monetary Economics 32 (2): 335–346. doi:10.1016/0304-3932(93)90009-5.
   Web of Science ®Google Scholar
• Carrion-i-Silvestre, J. L., and A. Sansó. 2007. “The KPSS Test with Two Structural Breaks.” Spanish Economic Review 9 (2): 105–127. doi:10.1007/s10108-006-9017-8.
   Google Scholar
• Cashin, P., and R. Sahay. 1996a. “Internal Migration, Centre-State Grants and Economic Growth in the States of India.” IMF Staff Papers 43 (1): 123–171. doi:10.2307/3867355.
   Google Scholar
• Cashin, P., and R. Sahay. 1996b. “Regional Economic Growth and Convergence in India.” Finance and Development 33 (1): 49–52.
   Google Scholar
• Chatterjee, M. 1992. “Convergence Clubs and Endogenous Growth.” Oxford Review of Economic Policy. 8 (4): 57–69. doi:10.1093/oxrep/8.4.57.
   Web of Science ®Google Scholar
• 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.
   Google Scholar
• Dholakia, R. H. 1994. “Spatial Dimensions of Accelerations of Economic Growth in India.” Economic and Political Weekly 29 (35): 2303–2309.
   Google Scholar
• Dickey, D. A., and W. A. Fuller. 1979. “Distribution of the Estimators for Autoregressive Time Series with a Unit Root.” Journal of the American Statistical Association 74: 427–431. doi:10.2307/2286348.
   Web of Science ®Google Scholar
• Evans, P. 1996. “Using Cross-Country Variances to Evaluate Growth Theories.” Journal of Economic Dynamics and Control 20 (6–7): 1027–1049. doi:10.1016/0165-1889(95)00888-8.
   Web of Science ®Google Scholar
• Evans, P. 1997. “How Fast Do Economics Converge?” Review of Economics and Statistics 79 (2): 219–225. doi:10.1162/003465397556809.
   Web of Science ®Google Scholar
• Evans, P. 1998. “Using Panel Data to Evaluate Growth Theories.” International Economic Review 39 (2): 295–305. doi:10.2307/2527294.
   Web of Science ®Google Scholar
• Evans, P., and G. Karras. 1996. “Convergence Revisited.” Journal of Monetary Economics 37: 249–265. doi:10.1016/S0304-3932(96)90036-7.
   Web of Science ®Google Scholar
• Fleissig, A., and J. Strauss. 2001. “Panel Unit-Root Tests of OECD Stochastic Convergence.” Review of International Economics 9 (1): 153–162. doi:10.1111/roie.2001.9.issue-1.
   Google Scholar
• Galor, O. 1996. “Convergence? Inferences from Theoretical Models.” The Economic Journal. 106 (437): 1056–1069. doi:10.2307/2235378.
   Web of Science ®Google Scholar
• Ghosh, B., and P. De. 1998. “Role of Infrastructure in Regional Development: A Study of India over the Plan Period.” Economic and Political Weekly 33 (47–48): 3039–3048.
   Google Scholar
• Ghosh, M. 2008. “Economic Reforms, Growth and Regional Divergence in India.” Margin: the Journal of Applied Economic Research 2 (3): 265–285. doi:10.1177/097380100800200303.
   Google Scholar
• Ghosh, M. 2010. “Economic Policy Reforms and Regional Inequality in India.” Journal of Income and Wealth 32 (2): 71–88.
   Google Scholar
• Ghosh, M. 2012. “Regional Economic Growth and Inequality in India during the Pre- and Post-Reform Periods.” Oxford Development Studies 40 (2): 190–212. doi:10.1080/13600818.2012.677818.
   Google Scholar
• Ghosh, M. 2013. “Regional Economic Growth and Inequality.” In Liberalization, Growth and Regional Disparities in India, India Studies in Business and Economics Series, 17–45. India: Springer. doi:10.1007/978-81-322-0981-2_3.
   Google Scholar
• 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.
   Web of Science ®Google Scholar
• Hadri, K. 2000. “Testing for Stationarity in Heterogeneous Panel Data.” The Econometrics Journal 3 (2): 148–161. doi:10.1111/ectj.2000.3.issue-2.
   Google Scholar
• Hayashi, F. 2000. Econometrics. Princeton: Princeton University Press.
   Google Scholar
• Im, K., J. Lee, and M. Tieslau. 2005. “Panel LM Unit-Root Tests with Level Shifts.” Oxford Bulletin of Economics and Statistics 67 (3): 393–419. doi:10.1111/obes.2005.67.issue-3.
   Web of Science ®Google Scholar
• Kalra, S., and S. Sodsriwiboon. 2010. “Growth Convergence and Spillovers among Indian States: What Matters? What Does Not?” (IMF Working Paper No. WP/10/96). Washington, DC: International Monetary Fund.
   Google Scholar
• Kar, S., and S. Sakthivel. 2007. “Reforms and Regional Inequality in India.” Economic and Political Weekly 42 (47): 69–77.
   Google Scholar
• Kurozumi, E. 2002. “Testing for Stationarity with a Break.” Journal of Econometrics 108: 63–99. doi:10.1016/S0304-4076(01)00106-3.
   Web of Science ®Google Scholar
• Kwiatkowski, D., P. C. B. Phillips, P. Schmidt, and Y. Shin. 1992. “Testing the Null Hypothesis of Stationarity against the Alternative of a Unit Root: How Sure are We that Economic Time Series Have a Unit Root?” Journal of Econometrics 54 (1–3): 159–178. doi:10.1016/0304-4076(92)90104-Y.
   Web of Science ®Google Scholar
• Lahiri, A., and K.-M. Yi. 2009. “A Tale of Two States: Maharashtra and West Bengal.” Review of Economic Dynamics 12 (3): 523–542. doi:10.1016/j.red.2008.09.006.
   Web of Science ®Google Scholar
• Lee, J., and M. C. Strazicich. 2003. “Minimum Lagrange Multiplier Unit Root Test with Two Structural Breaks.” Review of Economics and Statistics 85 (4): 1082–1089. doi:10.1162/003465303772815961.
   Web of Science ®Google Scholar
• Li, H., and G. S. Maddala. 1996. “Bootstrapping Time Series Models (With Discussion).” Econometric Reviews 15: 115-195.
   Google Scholar
• Liu, J., S. Wu, and J. V. Zidek. 1997. “On Segmented Multivariate Regression.” Statistica Sinica 7 (2): 497–525.
   Web of Science ®Google Scholar
• Carrion-i-Silvestre, J. L., D. Barrio-Castro, and E. Lopez-Bazo. 2005. “Breaking the Panels : An Application to the GDP per Capita.” Econometrics Journal 8: 159–175. doi:10.1111/j.1368-423X.2005.00158.x.
   Web of Science ®Google Scholar
• Lumsdaine, R. L., and D. H. Papell. 1997. “Multiple Trend Breaks and the Unit-Root Hypothesis.” Review of Economics and Statistics 79: 212–218. doi:10.1162/003465397556791.
   Web of Science ®Google Scholar
• Maddala, G. S., and S. Wu. 1999. “A Comparative Study of Unit Root Tests with Panel Data and A New Simple Test.” Oxford Bulletin of Economics and Statistics Special Issue 61: 631–652. doi:10.1111/obes.1999.61.issue-S1.
   Web of Science ®Google Scholar
• Mankiw, N., D. Romer, and D. Weil. 1992. “A Contribution to the Empirics of Economic Growth.” Quarterly Journal of Economics 107: 407–437. doi:10.2307/2118477.
   Web of Science ®Google Scholar
• Marjit, S., and S. Mitra. 1996. “Convergence in Regional Growth Rates: Indian Research Agenda.” Economic and Political Weekly 31 (33): 2239–2242.
   Google Scholar
• Meng, M., J. E. Payne, and J. Lee. 2013. “Convergence in per Capita Energy Use among OECD Countries.” Energy Economics 36: 536–545. doi:10.1016/j.eneco.2012.11.002.
   Web of Science ®Google Scholar
• Mishra, V., and R. Smyth. 2014. “Convergence in Energy Consumption per Capita among ASEAN Countries.” Energy Policy 73: 180–185. doi:10.1016/j.enpol.2014.06.006.
   Web of Science ®Google Scholar
• Mishra, V., S. Sharma, and R. Smyth. 2009. “Are Shocks to Real Output Permanent or Transitory? Evidence from a Panel of Pacific Island Countries.” Pacific Economic Bulletin 24 (1): 65–82.
   Web of Science ®Google Scholar
• Moon, H. R., and B. Perron. 2004. “Testing for a Unit Root in Panels with Dynamic Factors.” Journal of Econometrics 122 (1): 81–126. doi:10.1016/j.jeconom.2003.10.020.
   Web of Science ®Google Scholar
• Nagaraj, R., A. Varoudakis, and M. A. Veganzones. 2000. “Long-Run Growth Trends and Convergence across Indian States.” Journal of International Development 12: 45–70. doi:10.1002/(SICI)1099-1328(200001)12:1<45::AID-JID586>3.0.CO;2-Z.
   Google Scholar
• Nayyar, G. 2008. “Economic Growth and Regional Inequality in India.” Economic and Political Weekly 43 (6): 58–67.
   Google Scholar
• Pesaran, M. H. 2004. “General Diagnostic Tests for Cross Section Dependence in Panels.” Cambridge Working Papers in Economics No. 435, University of Cambridge, and CESifo Working Paper Series No. 1229, Cambridge, UK.
   Google Scholar
• Phillips, P. C. B. 1987. “Time Series Regression with Unit Roots.” Econometrica 55 (2): 277–302. doi:10.2307/1913237.
   Web of Science ®Google Scholar
• Phillips, P. C. B., and P. Perron. 1988. “Testing for a Unit Root in Time Series Regression.” Biometrika 75 (2): 335–346. doi:10.1093/biomet/75.2.335.
   Web of Science ®Google Scholar
• Rao, M. G., R. T. Shand, and K. P. Kalirajan. 1999. “Convergence of Incomes across Indian States: A Divergent View.” Economic and Political Weekly 34 (13): 769–778.
   Google Scholar
• Sachs, J. D., N. Bajpai, and A. Ramiah. 2002. “Understanding regional economic growth in India (CID Working Paper No. 88).” Cambridge, MA: Centre for International Development, Harvard University
   Google Scholar
• Sala-i-Martin, X. X. 1996. “The Classical Approach to Convergence Analysis.” The Economic Journal 106: 1019–1036. doi:10.2307/2235375.
   Web of Science ®Google Scholar
• Schmidt, P., and P. C. B. Phillips. 1992. “LM Tests for a Unit Root in the Presence of Deterministic Trends.” Oxford Bulletin of Economics and Statistics 54 (3): 257–287. doi:10.1111/j.1468-0084.1992.tb00002.x.
   Web of Science ®Google Scholar
• Shetty, S. L. 2003. “Growth of SDP and Structural Changes in State Economies: Interstate Comparison.” Economic and Political Weekly 38 (49): 5189–5200.
   Google Scholar
• Smyth, R., I. Nielsen, and V. Mishra. 2009. ““I”Ve Been to Bali Too’ (And I Will Be Going Back): Are Terrorist Shocks to Bali’s Tourist Arrivals Permanent or Transitory?” Applied Economics 41 (11): 1367–1378. doi:10.1080/00036840601019356.
   Web of Science ®Google Scholar
• 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.
   Web of Science ®Google Scholar
• Strazicich, M. C., and J. A. List. 2003. “Are CO2 Emission Levels Converging among Industrial Countries?” Environmental and Resource Economics 24 (3): 263–271. doi:10.1023/A:1022910701857.
   Web of Science ®Google Scholar
• Trivedi, K. 2002. “Regional convergence and catch-up in India between 1960 and 1992 (Working Paper, No. 2003-W01).” Oxford: Nuffield College, University of Oxford.
   Google Scholar
• Young, A. T., M. J. Higgins, and E. U. S. C. Data. 2008. “Sigma Convergence versus Beta Convergence.” Money, Credit and Banking 40: 5.
   Web of Science ®Google Scholar
• Zivot, E., and D. W. K. Andrews. 1992. “Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis.” Journal of Business & Economic Statistics 10. doi:10.1198/073500102753410372.
   Web of Science ®Google Scholar