Drishtikon: A Management Journal

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Economic Reforms and Regional Disparities in India


Affiliations
1 Faculty, Economics and Finance Area at School of Management, Sumandeep Vidiyapeeth University, Vadodara, Gujarat, - 391760, India
2 Faculty, Marketing & General Management School of Management , Sumandeep Vidiyapeeth University,. Vadodara, Gujarat, 391760, India
3 Reader in the Deptt of Commerce including business administration, Maharaja Shayaji Rao University of Baroda, Vadodara
     

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This paper makes an attempt to re-examine the issue of inter-state inequality of growth and standards of living across 14 major states within the convergence analysis of neoclassical growth paradigm after economic reforms from 1993-94 to 2004-05. Despite inconclusive evidence for β-divergence in per capita real income, the evidence in favour of β-divergence in secondary and tertiary sector in per capita terms shows the rising inter-state inequality of growth and standards of living across the Indian states during this period. This indicates that growth rates of the relatively better off states of these sectors have grown faster than that of the worse off counter parts. Thus, Policy makers and planners can think of creating the investment climates through private-public partnership in different lagging sectors of the states to achieve the balanced inter-state growth and to catch up the standards of living of the better off states.

Keywords

Real Income, Economic Reform, β,-Convergence, Primary, secondary and Tertiary Sectors
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  • Economic Reforms and Regional Disparities in India

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Authors

Md. Mahtab Alam
Faculty, Economics and Finance Area at School of Management, Sumandeep Vidiyapeeth University, Vadodara, Gujarat, - 391760, India
Ankita Soni
Faculty, Marketing & General Management School of Management , Sumandeep Vidiyapeeth University,. Vadodara, Gujarat, 391760, India
Ur Dangarwala
Reader in the Deptt of Commerce including business administration, Maharaja Shayaji Rao University of Baroda, Vadodara

Abstract


This paper makes an attempt to re-examine the issue of inter-state inequality of growth and standards of living across 14 major states within the convergence analysis of neoclassical growth paradigm after economic reforms from 1993-94 to 2004-05. Despite inconclusive evidence for β-divergence in per capita real income, the evidence in favour of β-divergence in secondary and tertiary sector in per capita terms shows the rising inter-state inequality of growth and standards of living across the Indian states during this period. This indicates that growth rates of the relatively better off states of these sectors have grown faster than that of the worse off counter parts. Thus, Policy makers and planners can think of creating the investment climates through private-public partnership in different lagging sectors of the states to achieve the balanced inter-state growth and to catch up the standards of living of the better off states.

Keywords


Real Income, Economic Reform, β,-Convergence, Primary, secondary and Tertiary Sectors

References