Growth Convergence and Spillovers among Indian States What Matters? What Does Not?

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...

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Bibliographic Details
Main Author: Sodsriwiboon, Piyaporn
Other Authors: Kalra, Sanjay
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2010
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a International finance 
653 |a Externalities 
653 |a Income 
653 |a Private investment 
653 |a Investment 
653 |a Infrastructure 
653 |a Personal income 
653 |a Intangible Capital 
653 |a Spillovers 
653 |a Personal Income, Wealth, and Their Distributions 
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520 |a 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