Whither the Indian Federation? Regional Disparities and Economic Reforms

Alessandrini, Michele and Buccellato, Tullio and Scaramozzino, Pasquale (2008): Whither the Indian Federation? Regional Disparities and Economic Reforms.

Abstract

The last two decades have seen increased divergence among the states of the Indian Federation in terms of their economic performance. This paper uses spatial econometric methods to examine how the regional pattern of growth has been influenced by the economic reforms implemented since the early 1990s. The process of liberalization and increased openness to international markets has imparted a clear spatial connotation to the gap dividing low and fast growing states. Winners were those states that benefited the most from the recent process of reform and liberalization, thanks also to their geographical advantage and to the presence of a developed service sector. Losers were instead the landlocked and highly populated states with a predominant agricultural sector and a low level of innovation.

• Item Type: MPRA Paper
• Language: English
• Keywords: India; Regional Convergence; Spatial Econometrics
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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