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Club‐convergence and polarization of states A nonparametric analysis of post‐reform India

Club‐convergence and polarization of states A nonparametric analysis of post‐reform India Purpose – The purpose of this paper is to study the dynamics of the distribution of per capita income of Indian states in the post‐reform period, in order to identify trends towards convergence‐club formation, polarization or stratification during this period. Design/methodology/approach – The authors adopt the “distribution dynamics” framework that involves estimating kernel density functions, stochastic kernels and ergodic distributions in order to identify these trends. Findings – The results show that there is polarization in India in the post‐reform period and this is due to the contrary growth dynamics of the middle‐income states resulting in the “vanishing middle” of the distribution. Originality/value – This is the first study that highlights the contrary growth dynamics among the middle‐income states as the driving force behind the polarization of Indian states in the post‐reform period. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Indian Growth and Development Review Emerald Publishing

Club‐convergence and polarization of states A nonparametric analysis of post‐reform India

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References (77)

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1753-8254
DOI
10.1108/17538251111125007
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to study the dynamics of the distribution of per capita income of Indian states in the post‐reform period, in order to identify trends towards convergence‐club formation, polarization or stratification during this period. Design/methodology/approach – The authors adopt the “distribution dynamics” framework that involves estimating kernel density functions, stochastic kernels and ergodic distributions in order to identify these trends. Findings – The results show that there is polarization in India in the post‐reform period and this is due to the contrary growth dynamics of the middle‐income states resulting in the “vanishing middle” of the distribution. Originality/value – This is the first study that highlights the contrary growth dynamics among the middle‐income states as the driving force behind the polarization of Indian states in the post‐reform period.

Journal

Indian Growth and Development ReviewEmerald Publishing

Published: Apr 19, 2011

Keywords: India; Distribution of wealth; National economy

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