Showing papers by "Chetan Ghate published in 2013"
TL;DR: In this paper, the authors present a comprehensive set of stylized facts for business cycles in India from 1950 to 2010, and report evidence that these changes are driven primarily by structural changes caused by market oriented reforms, and not by good luck.
35 citations
Journal Article•
TL;DR: In this article, the authors examined whether the relative size of shifts in growth across states could have been predicted from data on state characteristics, measured before the turnaround, and found that relatively high shares of both agriculture and registered manufacturing predicted weaker growth across all states.
Abstract: In earlier research we identified the start of the growth turnaround in the late 1980s. This is consistent with the pattern of (particularly trade) policy liberalisation at the time. Since then there has been a remarkable improvement in per capita incomes. But a puzzle remains. The change in policy should have had a symmetric effect across India. Yet the participation of different states in the turnaround has been very uneven. In this paper we examine whether the relative size of shifts in growth across states could have been predicted from data on state characteristics, measured before the turnaround. We use the “robustness” techniques first proposed by Sala-i-Martin. As might be expected, higher initial literacy, urbanisation and access to ports all predicted stronger growth. But we also find that relatively high shares of both agriculture and registered manufacturing predicted weaker growth across all
7 citations
Posted Content•
TL;DR: In this paper, the authors use a new data set of district level income and socio-economic data to explore the hypotheses of conditional convergence, using distance as a indicator of internal geographical trade and migration costs.
Abstract: The existing literature on Indian growth finds no evidence of convergence across states. This represents a puzzle given the relatively free flows of capital, labor and commodities across state borders. We use a new data set of district level income and socio-economic data to explore the hypotheses of conditional convergence, using distance as a indicator of internal geographical trade and migration costs. We find evidence of conditional convergence for Indian districts but at a rate that is only half of Barro’s “Iron Law”. From a policy perspective the results suggest that infrastructure supply is critical for achieving a more balanced pattern of growth in India.
6 citations
Posted Content•
TL;DR: The authors developed a model of conditional convergence that includes a gravity indicator of trade and migration costs -specifically the distance from a major metropolitan center -as a conditioning variable and found strong evidence of Indian growth with an elasticity close to Barro's "iron law".
Abstract: The existing literature on Indian growth finds no evidence of B convergence across states. This represents a puzzle given the relatively free flows of capital, labour and commodities across state borders. We use a new data set to estimate convergence rates across 575 Indian districts and find that the pattern of absolute B- divergence remains. To explain this we develop a model of conditional convergence that includes a gravity indicator of trade and migration costs - specifically the distance from a major metropolitan center - as a conditioning variable. We find strong evidence of conditional convergence with an elasticity close to Barro's "iron law". We also find that geography and public infrastructure variables are important conditioning variables.
3 citations