Mind the Gap—Is Economic Growth in India Leaving Some States Behind?

WPIEA2006103 Image
Price:  $15.00

Author/Editor: Catriona Purfield
Release Date: © April, 2006
ISBN : 978-1-45186-363-5
Stock #: WPIEA2006103
Stock Status: On back-order

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This paper examines how growth has varied across India's states. It finds that (i) the income gap between rich and poor states has widened; (ii) rich and faster-growing states have been more effective in reducing poverty; (iii) poor and slower-growing states have had little success in generating private sector jobs; (iv) labor and capital flows do little to close income gaps; and (v) the volatility in economic growth is greatest in poor states. Differences in states' policies affect the cross-state pattern of growth. Greater private sector investment, smaller governments, and better institutions are found to have a positive impact on growth.

More publications in this series: Working Papers

More publications by: Catriona Purfield