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Article
Long-Run Growth Trends and Convergence Across Indian States
Authors: --- ---
Year: 1998 Publisher: Paris : OECD Publishing,

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Abstract

This paper examines the growth performance of Indian States during 1970-94. We, first, propose a grouping of States according to differences in the availability of physical, social, and economic infrastructure, using principal components analysis. Then, combining principal components analysis and panel data estimation techniques, we assess the contribution of various infrastructure indicators to growth performance. The analysis tackles endogeneity issues in the provision of infrastructure by way of instrumental variables estimation for many of the infrastructure indicators. We do find evidence of conditional convergence across States. This does not rule out persistent income inequalities due to the dispersion of steady-state income levels. Such disparities are accounted for by differences, first, in the structure of production, second, in infrastructure endowments, and, third, in Statespecific fixed effects in the growth regression. Consequently, economic policy measures aiming at ...

Keywords

Development --- India


Article
State Infrastructure and Productive Performance in Indian Manufacturing
Authors: --- ---
Year: 1998 Publisher: Paris : OECD Publishing,

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Abstract

We present estimates, at the State level, of Indian manufacturing Total Factor Productivity (TFP) and Technical Efficiency (TE) from the estimation of production functions for 17 manufacturing industries from 1976 to 1992. Our analysis relates TFP and TE to the availability of infrastructure. We construct an aggregate infrastructure indicator from 12 indicators of core, social, and economic infrastructure. According to our findings, differences across States in manufacturing TFP and TE performance are accounted for, to a significant extent, by differences in infrastructure endowments. Our estimations make it possible, moreover, to measure the productive impact of the various types of infrastructure, as well as to identify the manufacturing industries where productivity gains are relatively more constrained by inadequate infrastructure. The findings could help in designing an effective policy of infrastructure investment, supporting both recent economic reforms towards industrial restructuring and efforts aiming to promote regional convergence in India ...

Keywords

Development --- India


Article
State Infrastructure and Productive Performance in Indian Manufacturing
Authors: --- ---
Year: 1998 Publisher: Paris : OECD Publishing,

Loading...
Export citation

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Bookmark

Abstract

We present estimates, at the State level, of Indian manufacturing Total Factor Productivity (TFP) and Technical Efficiency (TE) from the estimation of production functions for 17 manufacturing industries from 1976 to 1992. Our analysis relates TFP and TE to the availability of infrastructure. We construct an aggregate infrastructure indicator from 12 indicators of core, social, and economic infrastructure. According to our findings, differences across States in manufacturing TFP and TE performance are accounted for, to a significant extent, by differences in infrastructure endowments. Our estimations make it possible, moreover, to measure the productive impact of the various types of infrastructure, as well as to identify the manufacturing industries where productivity gains are relatively more constrained by inadequate infrastructure. The findings could help in designing an effective policy of infrastructure investment, supporting both recent economic reforms towards industrial restructuring and efforts aiming to promote regional convergence in India ...

Keywords

Development --- India


Article
Long-Run Growth Trends and Convergence Across Indian States
Authors: --- ---
Year: 1998 Publisher: Paris : OECD Publishing,

Loading...
Export citation

Choose an application

Bookmark

Abstract

This paper examines the growth performance of Indian States during 1970-94. We, first, propose a grouping of States according to differences in the availability of physical, social, and economic infrastructure, using principal components analysis. Then, combining principal components analysis and panel data estimation techniques, we assess the contribution of various infrastructure indicators to growth performance. The analysis tackles endogeneity issues in the provision of infrastructure by way of instrumental variables estimation for many of the infrastructure indicators. We do find evidence of conditional convergence across States. This does not rule out persistent income inequalities due to the dispersion of steady-state income levels. Such disparities are accounted for by differences, first, in the structure of production, second, in infrastructure endowments, and, third, in Statespecific fixed effects in the growth regression. Consequently, economic policy measures aiming at ...

Keywords

Development --- India

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