Regional Development and Income Disparities in India: A Sectoral Analysis

Mathur, Ashok

doi:10.1086/451338

Cited by 30 publications

(20 citation statements)

References 4 publications

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“…Theil indices are additively decomposable and satisfy several desirable properties as a measure of regional income inequality, i.e., mean independence, population-size independence, and the Pigou-Dalton principle of transfers (Bourguignon 1979;Shorrocks 1980). An inequality index is said to be additively decomposable if total inequality can be written as the sum 1 For example, Akita and Lukman (1995), , Chen and Fleisher (1996), Daniere (1996), Das and Barua (1996), Esmara (1975), Gilbert and Goodman (1976), Green (1969), Jensen (1969), Mathur (1983), Mutlu (1991), Tabuchi (1988), Tsui (1991Tsui ( , 1993Tsui ( , 1996, Uppal and Budiono (1986), Wei and Ma (1996), Zheng (1997).…”

Section: Decomposition Of Theil Inequality Indices: Two-stage Nested mentioning

confidence: 99%

Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method

Akita

2003

The Annals of Regional Science

155

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The objective of this paper is to present an inequality decomposition method, the two-stage nested Theil decomposition method, which is an extension of the ordinary one-stage Theil decomposition method. The method is analogous to a two-stage nested design in the analysis of variance (ANOVA). It considers the three-level hierarchical structure of a country: region-province-district, and decomposes overall regional inequality, as measured by Theil indices based on district-level mean incomes, into three components: the between-region, between-province, and within-province inequality components. The within-province component is a weighted-average of within-province income inequalities for each province, while the between-province component is a weighted-average of between-province income inequalities within each region. The method uses a district as the underlying regional unit to measure regional income inequality, rather than a province, and thus can analyze the contribution of within-province inequalities as well as between-province and between-region inequalities to the overall regional income inequality in a coherent framework. This paper applies the two-stage nested Theil decomposition method to district-level income and population data in China and Indonesia and explores factors determining regional income inequality in China and Indonesia. Copyright Springer-Verlag Berlin Heidelberg 2003JEL classification: O15, C8,

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Section: Decomposition Of Theil Inequality Indices: Two-stage Nested mentioning

confidence: 99%

Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method

Akita

2003

The Annals of Regional Science

155

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“…Mathur (1983) found a U-shaped behaviour of the regional income disparities. Das and Barua (1996), Ahluwalia (2002), Pal and Ghosh (2007), Kumar and Subramanian (2012) used advanced statistical tools however found contradictory results with each other about the behaviour of the disparities across the Indian states using the NAS dataset.…”

Section: Income Disparities Across Indian Statesmentioning

confidence: 92%

Income disparities across Indian States: evidence from Kuznets curve and shift analysis

Sofi

Durai

2015

International Journal of Development Issues

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services. AbstractPurpose -This study aims to analyse the patterns of growth and income disparities and to have a future insight about its behaviour across 22 Indian states for the period from 1980-1981 to 2010-2011. Design/methodology/approach -This paper uses a three-stage methodological procedures to arrive at the results. First, the distributional aspect of per capita income has been analyzed by using Kuznets's Inverted-U Hypothesis. Second, to analyse the relative performance across India states, the Shift Analysis Technique has been utilized. Finally, analyzing the future aspect of the growth and disparities among the low-, middle-and high-income states a catch process has been performed. Findings -The empirical results rejects the Kuznets's hypothesis for both aggregate and sectoral incomes across Indian states. The relative performance of Indian states shows signs of decreasing the income disparities over the time with a positive shift. Finally, the catch-up process among the low-, middle-and high-income states suggests different time bands for each group to narrow down or eliminate the income disparities in future. Originality/value -This study contributes to the literature in three ways. First, examining the sectoral growth and disparities across Indian states by testing the Kuznets's Inverted-U Hypothesis to highlight the specification issue; second, to measure the relative performance of Indian states over the time that can help us to find out the individual states that are purely responsible for income disparities in India. Finally, estimates of catch-up speed among Indian states provide a prediction about their behaviour to eradicate the disparities in future.

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“…Various studies (Dholakia, 2003;Mathur, 1983Mathur, , 1987Noorbakhsh, 2002) have tried to trace the path of development in India with a special focus on its regional pattern. Most of them have used 'states' as the unit of region and studied cross-sectional disparity in development over time-points to emphasise longterm trends.…”

Section: Literature On Human Development: Brief Reviewmentioning

confidence: 99%

Efficiency in Human Development Achievement

Dutta

2011

Margin: The Journal of Applied Economic Research

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Research on human development has received considerable importance in India from both academics and a policy point of view. However, previous studies on human development have mainly focused on the equity aspects of development without considering the resource base. The current study seeks to estimate efficiency level of Indian states in achieving various dimensions of human development by using data envelopment analysis (DEA) for the periods 1981, 1991 and 2001. It is seen that Delhi, Kerala and Tamil Nadu with relatively high achievement rates in health and education are operating at the efficiency frontiers. On the other hand, Bihar, Madhya Pradesh, Orissa and Uttar Pradesh have low outcomes, but also face the problem of limited scope for improving these outcomes and catching up with the better-off states. It is argued here that adequate inputs need to be made available for such states-either by generating and investing more in every sector or by better usage of existing centrally sponsored schemes. The study has also made an attempt to identify the determinants of efficiency. It is found that greater road connectivity, share of expenditure on social sector, fund allocation to the local bodies and share of state's own-tax revenue tend to increase the efficiency level, and higher crime rates and corruption tend to decrease the efficiency level.

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Regional Development and Income Disparities in India: A Sectoral Analysis

Cited by 30 publications

References 4 publications

Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method

Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method

Income disparities across Indian States: evidence from Kuznets curve and shift analysis

Efficiency in Human Development Achievement

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