- India and the World Economy, 1757–1947
- Battles Half Won: Political Economy of India's Growth and Economic Policy Since Independence
- Estimating Rural Poverty: Distributional Outcomes, Evaluations, and Policy Responses
- Microfinance: The Shg-Linkage Program
- Microinsurance: A Case Study of the Indian Rainfall Index Insurance Market
- Caste and Upward Mobility
- Performance of Indian Manufacturing in the Postreform Period
- Informal Sector and the Developing World: Relating Theory and Evidence to India
- Structural Transformation and Jobless Growth in the Indian Economy
- Development, Displacement, and Food Security: Land Acquisition in India
- Reforming Primary and Secondary Schooling
- Higher Education Reforms in India
- Health and Health Care Policy in India: The Case for Quality of Care
- Population Dynamics in India and Implications for Economic Growth
- The Dynamics and Status of India's Economic Reforms
- Political Economy of Infrastructure Spending in India
- Aspects of Bureaucratic Corruption
- Distributive Conflicts and Indian Economic Policy: Some Notes On Political Economy
- Economic Growth and Ecological Sustainability in India
- Fiscal Rules in India: are they Effective?
- Financial Frictions and Monetary Policy Transmission in India
- Monetary Policy, Capital Flows, and the Exchange Rate
- India's Trade and Exchange-Rate Policies: Understanding the Bop Crisis and the Reforms Thereafter
- Domestic Financial Sector Reforms
- The Convergence Debate and Econometric Approaches: Evidence from India
- The Globalization Debate and India
- India at the WTO: From Uruguay to Doha and Beyond
- An Estimated DSGE Model of the Indian Economy
- Development Patterns in China and India: Perspective with A Ces Production Function
- What More do we want to know about the Indian Economy?
Abstract and Keywords
This article notes that the econometric literature on convergence has been critical of traditional growth regressions for studying economic convergence across countries and regions, based on the popular notions of β and ó convergences. This is because these methods fail to allow for unobserved (and persistent) differences across countries, and they are susceptible to measurement errors, endogeneity biases, and spatial autocorrelation. The article does two things: First, it investigates the convergence hypothesis among Indian states by using panel unit root tests that explicitly incorporate cross-sectional dependence (various socioeconomic variables in different regions in India are expected to be contemporaneously correlated). Second, two measures of well-being are used: per capita consumption—both rural and urban—and per capita state-level GDP (SGDP). Most of the studies on India are based on SGDP, which is a questionable indicator of welfare. The article also incorporates possible structural breaks that may occur and may lead to completely different outcomes of the convergence hypothesis test.
Samarjit Das (Indian Statistical Institute - Kolkata)
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