/pdf/the-theory-of-industrial-organization-19bejph0ej.pdf

The Theory of Industrial Organization

Economics and Information Theory

Sunk costs and market structure: price competition, advertising and the evolution of concentration

Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities

This paper aims to explain the growth experiences of 14 major states of India between 1980 and 1998. Using two measures of convergence, σ-convergence and s-convergence, we examine whether per capita incomes in the states have been converging or diverging. By both standards of convergence, India demonstrated overall divergence during 1980–;98, as well as during both the pre-reform and post-reform subperiods. Interestingly, the richer states experienced a degree of convergence during the post-reform period, whereas the poorer states did not. Divergence was most notable within the poorer group of states. A remarkable 82 percent of the cross-state variation in growth is explained by just the urbanization variable in India, with no hint of any conditional convergence after controlling for the degree of urbanization. The regression estimate shows that a 10 percentage point higher rate of urbanization is associated with 1.3 percentage points per year higher rate of annual growth.

/pdf/understanding-regional-economic-growth-in-india-39hsk9ezw0.pdf

Understanding Regional Economic Growth in India

In this article we examine the pattern of regional inequalities in India during 1970–92. Trend analysis shows that inter‐state inequality is rising in India in almost every sphere of economic activity, particularly in the unorganised industry.

Regional inequalities, economic growth and liberalisation: A study of the Indian economy

This paper examines the impact of economic liberalization on interregional inequality in India. It has been observed in many studies that interregional inequality in India has been steadily increasing over time. This paper is a further confirmation of this result. We have tried to locate the cause of rising interregional inequality within the production structure of the economy and observed that it is positively and systematically related to the cross-regional inequalities in agriculture and manufacturing. This systematic relationship has further been examined from a structuralist viewpoint to unravel the factors determining manufacturing production across regions where we have found that trade openness is the key factor determining the manufacturing share in income across the regions. Our further enquiry into manufacturing and trade patterns has shown that the Herfindahl index of concentration has been increasing over time on both counts. This result, along with the findings of the structuralist model about disproportionate growth of manufacturing across regions, provides an explanation of the cause of rising interregional inequality in India.

Does openness affect regional inequality? A case study for India.

Trade and wage inequality: A specific factor model with intermediate goods

This paper critically examines the relevance of the Look East Policy for the industrialisation of the northeastern region of India. While recognising the strategic and political importance of the n...

Perspectives on Growth and Development in the Northeast: The Look East Policy and Beyond

Inclusive economic development has become a pressing goal of government policy in India in the face of rising regional inequality. This paper examines the role of targeted development policy action in inducing economic growth and also in reducing regional income inequality during the last two decades (since the beginning of the 1990s)—a period marked by increasing trade openness. In our disaggregated analysis of the states, we find that while the government capital expenditure policy has had significant positive impact on output growth of the poorer states, it failed to break the trend of escalating regional inequality. The policy has been significantly more effective in enhancing manufacturing sector output in the poorer states compared with the richer states. On the trade front, while the poorer states gained somewhat in income growth from greater openness, the gains were not large enough to offset the increasing regional disparity.

https://papers.ssrn.com/sol3/Delivery.cfm/RODE_RODE12154.pdf?abstractid=2631271&mirid=4

Alokesh Barua

Papers

Regional inequalities, economic growth and liberalisation: A study of the Indian economy

Does openness affect regional inequality? A case study for India.

Trade and wage inequality: A specific factor model with intermediate goods

Perspectives on Growth and Development in the Northeast: The Look East Policy and Beyond

Development Policy Implications for Growth and Regional Inequality in a Small Open Economy: The Indian Case