An empirical inquiry into per capita convergence of Indian states

Roy, Subaran, Sen, Chitrakalpa and Sanyal, Rohini (2019) An empirical inquiry into per capita convergence of Indian states. Global Journal of Emerging Market Economies, 11 (3). pp. 232-247. ISSN 09749101

[thumbnail of GJEME2019.pdf] Text
GJEME2019.pdf - Published Version
Restricted to Registered users only

Download (893kB) | Request a copy


The topic of growth convergence (or the lack of it) has always been one of the most important economic phenomena for Indian states. This study undertakes more than 3 decades of data for Indian states from the 1980s and traces convergence of state-level per capita income; breaking the data down into the subperiods based on time and levels of income using panel unit root tests. The results show no discernible evidence of convergence across the states, especially after post-liberalization. However, taking into account control variables for capital expenditure, development expenditure, and fiscal deficit, we find significant evidence for convergence of state-level per capita GDP. This indicates that the nature of inequality across states is not structural in nature and can be reduced through active policy interventions.

Item Type: Article
Keywords: Economic growth | Growth convergence | Inequality | Per capita state domestic product
Subjects: Social Sciences and humanities > Economics, Econometrics and Finance > Economics
JGU School/Centre: Jindal School of Government and Public Policy
Depositing User: Shilpi Rana
Date Deposited: 17 Dec 2021 08:55
Last Modified: 17 Dec 2021 08:55
Official URL:


Downloads per month over past year

Actions (login required)

View Item
View Item