Volume 32, Issue 8 p. 1256-1272
Research Article

INCOME CONVERGENCE IN INDIAN DISTRICTS: NEW EVIDENCE FROM PANEL STATIONARITY TEST WITH FINITE TIME DIMENSION

Biswa Swarup Misra

Corresponding Author

Biswa Swarup Misra

Economics Area, Xavier Institute of Management, Xavier University, Bhubaneswar, India

Correspondence to: Biswa Swarup Misra, Economics Area, Xavier Institute of Management, Xavier University, Xavier Square, Bhubaneswar, Odisha 751013, India.

E-mail: biswa@ximb.ac.in

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Muhsin Kar

Muhsin Kar

Department of Economics, NiğdeÖmerHalisdemir University, Niğde, Turkey

Department of Economics, Ankara Yildirim Beyazit University, Ankara, Turkey

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Saban Nazlioglu

Saban Nazlioglu

Department of International Trade & Finance, Pamukkale University, Denizli, Turkey

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Cagin Karul

Cagin Karul

Department of Econometrics, Pamukkale University, Denizli, Turkey

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First published: 12 August 2020
Citations: 4

Abstract

This paper tests for income convergence at the district level in India taking into account district income for 388 districts in 12 states during 2001–2011. We study income convergence among districts within a state as well districts across states that share similar initial conditions. Given the finite sample property of the data, we conduct a novel panel stationarity test with a fixed time dimension. The findings do not support the convergence of the per capita district income in Indian states. The deterioration in economic and social infrastructure in the relatively backward districts during the study period seems to drive the results. © 2020 John Wiley & Sons, Ltd.

DATA AVAILABILITY STATEMENT

The data that support the findings of this study are available from the corresponding author upon request.

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