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Do We Share the Same Destiny? An Empirical Study on the Convergence of Growth Among Indian States

  • Sattwik Santra
  • Samarjit DasEmail author
Conference paper

Abstract

The paper examines whether there is a convergence of per capita consumption, and state domestic product across the various states of India. We use a set of panel unit root tests including ones that are robust to cross-sectional dependence. We find that although there is some evidence in favor of convergence in per capita consumption, the state domestic products in per capita terms of the Indian states exhibit non-convergence for all the tests. But there are certain state groups that exhibit intra-group convergence for all the variables considered for all the tests. The results indicate exacerbating overall inter-state inequality prospects on one hand, and a bunching of the states in terms of the overall economic performance on the other.

Keywords

Growth convergence Empirical methodology Panel unit root Cross-sectional dependence 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.Centre for Training and Research in Public Finance and Policy, Centre for Studies in Social SciencesKolkataIndia
  2. 2.Economic Research UnitIndian Statistical InstituteKolkataIndia

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