Regional Sources of Growth Acceleration in India
Abstract
Gujarat, West Bengal, Karnataka, Maharashtra, Kerala, and Tamil Nadu were the major contributors to growth acceleration in India after 1991-92. Although regional disparity may increase temporarily, causality test provides support to the hypothesis about spread effects. The regional growth targets assigned by the 11th Plan in India seem to rely on the spread effects of economic growth acceleration in the better-off states to achieve its 9 per cent growth target and reduce regional disparity in the long run. To strengthen spread effects, the domestic economy should be further integrated and interlinked with free flow of goods, services, and factors of production.
Collections
- Working Papers [2627]