Internal Migration, Center-State Grants and Economic Growth in the States of India

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...

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Bibliographic Details
Main Author: Cashin, Paul
Other Authors: Sahay, Ratna
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1995
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Internal Migration, Center-State Grants and Economic Growth in the States of India  |c Paul Cashin, Ratna Sahay 
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651 4 |a India 
653 |a Population & demography 
653 |a Migration 
653 |a Public expenditure review 
653 |a Income 
653 |a Regional Economic Activity: Growth, Development, and Changes 
653 |a Disposable income 
653 |a Demographic Economics: General 
653 |a Public finance & taxation 
653 |a International Migration 
653 |a Personal income 
653 |a Migration, immigration & emigration 
653 |a Emigration and immigration 
653 |a Personal Income, Wealth, and Their Distributions 
653 |a National accounts 
653 |a National income 
653 |a National Government Expenditures and Related Policies: General 
653 |a Population and demographics 
653 |a Expenditure 
653 |a Demography 
653 |a Expenditures, Public 
653 |a Population 
653 |a Macroeconomics 
653 |a Emigration and Immigration 
653 |a Public Finance 
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520 |a 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