Trade and labour market linkages in India : evidence and issues

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Infrastructures et performances de croissance à long terme: le cas des Etats indiens

International audienceThis paper examines the growth performances of Indian States from 1970 to 1994. First, using principal components analysis, we proceed at a grouping of the States following their endowments in physical, social and economic infrastructure. We then combine principal components analysis with panel data estimation techniques in order to assess the contribution of various types of infrastructure to growth. Our estimations account for reverse causality arising from the endogeneity of infrastructure investment, as well as for spatial autocorrelation of residuals and for spatial autoregression. 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 in the structure of production and in infrastructure endowments, as well as in State-specific fixed effects int he growth regression. We highlight finally spatial spillover effects of growth across States

Long-Run Growth Trends and Convergence Across Indian States

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 ... Ce document examine les performances de croissance des États Indiens sur la période 1970-94. Nous procédons tout d’abord à un regroupement des États en fonction de leurs dotations en infrastructures physiques, économiques et sociales, sur la base d’une analyse en composantes principales. Nous combinons ensuite cette technique et l’économétrie des données de panel, dans le but d’évaluer la contribution des divers types d’infrastructures à la croissance. L’analyse tient compte de l’endogénéité de certains types d’infrastructures par l’utilisation de variables instrumentales. Nos résultats permettent de mettre en évidence la convergence conditionnelle des États Indiens. Ce constat n’exclut pas la persistance des inégalités de revenu par tête entre les États, du fait de l’existence de différences dans le niveau d’équilibre de ces revenus. Ces différences s’expliquent par celles premièrement des structures de production, deuxièmement des dotations en infrastructures ...

Long-Run Growth Trends and Convergence Across Indian States: The Role of Infrastructures

International audienceThis paper examines the growth performance of Indian States during 1970–94. We, first, assess the contribution of differences in the availability of physical, social, and economic infrastructure to growth performance. Our estimations account for reverse causality arising from the endogeneity of infrastructure investment. Then, combining principal components analysis and panel data estimation techniques, we provide more accurate estimates of the growth impact of specific types of infrastructure. In particular, we highlight the strong impact of primary education, health conditions, irrigation, roads and rail network, power capacities, and financial development. Moreover, 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 State‐specific fixed effects in the growth regression. Copyright © 2000 John Wiley & Sons, Ltd