Do growth accelerations help economies escape from low‐growth traps? Evidence from Indian States

Kar, Sabyasachi and Jha, Debajit ORCID: https://orcid.org/0000-0001-7797-9067 (2026) Do growth accelerations help economies escape from low‐growth traps? Evidence from Indian States. Economics of Transition and Institutional Change, 34 (1). pp. 73-86. ISSN 2577-6975

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Abstract

Developing economies are frequently caught in low-growth traps. This paper attempts to test whether a significant growth up-break, known popularly in the literature as growth accelerations, can enable them to break out of such traps. A three-step process is adopted to test this hypothesis. The first step involves identifying economies caught in low-growth traps using the convergence club framework. The second step identifies all growth transitions, that is, growth accelerations and slowdowns, exhibited by these economies. The third step investigates whether having a growth acceleration is positively correlated with converging to a higher-performing growth club, controlling for initial conditions and growth slowdowns. Using this three-step process and using data from subnational regions of India, we next test our hypothesis. Our results show that growth accelerations have indeed played a significant role in club formation in India, enabling subnational regions with such accelerations to break into higher-growth convergence clubs. Finally, drawing on the growth transition literature, our analysis suggests policy strategies for low-growth economies that can help them to ignite growth accelerations and escape to higher-performing clubs.

Item Type: Article
Uncontrolled Keywords: Economic reforms | Growth accelerations | Growth policy | Low-growth trap
Subjects: Social Sciences and humanities > Economics, Econometrics and Finance > Economics
Social Sciences and humanities > Social Sciences > Social Sciences (General)
Vol/Issue no. published date: January 2026
Depositing User: Mr. Arjun Dinesh
Date Deposited: 04 May 2025 20:28
Last Modified: 18 May 2026 10:38
Official URL: https://doi.org/10.1111/ecot.12455
URI: https://pure.jgu.edu.in/id/eprint/9437

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