Regional Economic Growth and Inequality in India: A Sector-wise Decomposition AnalysisRanjan Aneja, Barkha and Umer Jeelanie Banday Arthaniti: Journal of Economic Theory and Practice, 2021, vol. 20, issue 1, 95-110 Abstract: This article attempts to examine the behaviour of various sectors, with emphasis on the role of income inequality. First, the article estimates the sectoral decomposition in terms of net state domestic product (NSDP) among different states from years 1991–1992 to 2016–2017. Second, we analyse the sector-wise decomposition of regional inequality in term of per capita income. Finally, we analyse the role of developmental expenditure in regional inequalities in term of per capita developmental expenditure across various states. Based on empirical results, India has witnessed a high growth in per capita income in the post-reform period. With high growth rate, the sectoral composition of income has also registered a major change. The tertiary sector is the major contributor to growth in the post-reform period. At the sectoral level, disparity decreased within the sectors in case of primary and tertiary sector and increased in secondary sector. However, overall, the tertiary and secondary sectors are more responsible for raising the income inequality among the states while primary sector is offsetting this gap. JEL: O15, I14, I32, O12 Keywords: Economic growth; income inequality; net state domestic product; economic reform (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:artjou:v:20:y:2021:i:1:p:95-110 Access Statistics for this article More articles in Arthaniti: Journal of Economic Theory and Practice |
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