Regional Growth Dynamics in India in the Post-Economic Reform Period

by Misra, Biswa Swarup

• ISBN13: 9780230004917
• ISBN10: 0230004911
• Format: Hardcover
• Copyright: 2007-05-15
• Publisher: Palgrave Macmillan

Summary

With economic reforms underway for more than a decade in India, it is interesting to examine the responses of the Indian states to the newer challenges. This book addresses a wide range of issues, such as growth dynamics, income inequality, the fiscal behaviour of the states, the role of the banking sector, and the emerging institutional structure aimed at catering for social banking and strategies for agricultural growth.

Author Biography

BISWA SWARUP MISRA heads the Department of Economic Analysis and Policy at the Patna office of the Reserve Bank of India. He was an Economist at the Union Bank of India from 2001-2002. He is a core team member in Reserve Bank's research reports and resource person for policy documents. He has published in Banca D'Italia's Conference Volume of Workshop on Public Finance, Reserve Bank's Occasional Papers, the Journal of Quantitative Economics, and the Indian Economic Journal.

Table of Contents

List of Tables	p. xi
List of Figures	p. xiii
Preface	p. xv
Acknowledgements	p. xvii
List of Abbreviations	p. xix
Introduction	p. 1
Growth Performance	p. 13
Alternative approaches to the states' economic performance	p. 14
Data issues	p. 17
Behaviour of growth: spatial and temporal dimensions	p. 21
Sectoral growth in the post-reform period	p. 26
Variability of state domestic product	p. 30
Sectoral shares in output	p. 32
Sectoral contribution to growth	p. 36
Concluding observations	p. 38
Data issues	p. 41
A note on projection of output and population	p. 43
SDP estimation methodology: co-ordination between CSO and DoS	p. 47
Income Inequality	p. 55
Income differential across states	p. 57
Rank analysis	p. 59
Inequality measures	p. 63
Convergence analysis	p. 70
Concluding observations	p. 84
Kendall's Coefficient of Concordance	p. 88
Construction of Rank Concordance Index	p. 89
Gini decomposition of sectoral inequality (1981-93)	p. 91
Absolute convergence cross-section dimension	p. 94
Absolute convergence panel dimension	p. 95
Ranking of states (1981-93)	p. 96
Issues in convergence estimation: cross-section and panel data models	p. 97
State Finances	p. 101
Evolution of public finances	p. 103
Major fiscal reform initiatives at the state level	p. 111
The cyclical character of fiscal policy	p. 113
Fiscal stance: significance and consequence for inflation	p. 116
Concluding observations	p. 123
Computation of fiscal impulse	p. 124
Decomposition of primary deficit	p. 125
Decomposition of deficit: estimation procedure	p. 129
Analytics of Credit-Output Behaviour for Indian States	p. 133
Review of the literature	p. 138
Pattern of growth and credit allocation	p. 142
Econometric methodology	p. 145
Empirical results	p. 153
Concluding observations	p. 155
Time series error correction mechanism results	p. 158
Time series unit root tests	p. 160
Time series cointegration evidence	p. 162
Panel unit root tests	p. 165
Changing share of output and credit in the states	p. 166
Changing growth of output and credit in the states	p. 167
Regional Rural Banks: Restructuring Strategies	p. 169
Restructuring strategies	p. 171
Performance of regional rural banks in the spatial dimension: some stylized facts	p. 173
Review of the literature	p. 180
Data and methodology	p. 183
Empirical results	p. 187
Restructuring in practice	p. 188
Conclusion	p. 195
The basis for the umbilical cord hypothesis	p. 197
Agricultural Growth in Indian States: The Case of Orissa	p. 199
Orissa's economic performance	p. 202
Overview of agriculture in Orissa	p. 205
Review of the literature	p. 211
Modelling agricultural performance	p. 213
Conclusion	p. 223
Notes	p. 225
Bibliography	p. 233
Index	p. 247
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