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Development Performance across Indian States and the Role of Governments

In: Community, Market and State in Development

Author

Listed:
  • Kaliappa Kalirajan
  • Shashanka Bhide
  • Kanhaiya Singh
Abstract
In the context of balanced regional development, drawing on the East Asian model of industrial development recently discussed in Sonobe and Otsuka (2006), a relevant point that needs to be made at the outset is that less equitable spatial development is not necessarily an indicator of constraints to overall growth of the economy. Yet, if large and populous spatial segments of the economy remain backward while the other regions move ahead for long periods of time, the overall national development strategy becomes unsustainable (World Bank, 2009). The crucial questions in this context are about how to bring spatially equitable development in a country, and which institution has the primary responsibility for bringing such equitable development. Conventionally, an economic system is comprised of state and market, which means the primary responsibility for spatially equitable development rests with either state or market, or both. While a federal framework provides for allocation of state resources in an equitable manner, the market operates based on business perspectives that may not aim for spatially equitable development. In contrast to the conventional method of assigning factors contributing to socioeconomic development either to the state or to the market, Hayami (2004) introduced another relevant entity: “community.” Communities are expected to maintain benefits for their members in a sustainable manner at the local level, a strategy that may again not have spatial equity as an objective.

Suggested Citation

  • Kaliappa Kalirajan & Shashanka Bhide & Kanhaiya Singh, 2010. "Development Performance across Indian States and the Role of Governments," Palgrave Macmillan Books, in: Keijiro Otsuka & Kaliappa Kalirajan (ed.), Community, Market and State in Development, chapter 5, pages 45-63, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-29501-8_5
    DOI: 10.1057/9780230295018_5
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    Cited by:

    1. Alokesh Barua & Aparna Sawhney, "undated". "Structural Change, Economic Growth and Trade: Case for Regional Reallocation of Investment in India," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 10-06, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    2. Hansa Jain, 2019. "Wage–Productivity Relationship in Indian Manufacturing Industries: Evidences from State-level Panel Data," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(3), pages 277-305, August.
    3. Yusniliyana Yusof & Kaliappa Kalirajan & Azhar Mohamad, 2022. "Fiscal decentralization and convergence in government spending in Malaysia," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2669-2681, July.
    4. Kaliappa Kalirajan & Kanhaiya Singh, 2013. "Understanding Sectoral Economic Growth in India: The Potential for Services," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(1), pages 91-112, April.
    5. Alokesh Barua & Aparna Sawhney, 2015. "Development Policy Implications for Growth and Regional Inequality in a Small Open Economy: The Indian Case," Review of Development Economics, Wiley Blackwell, vol. 19(3), pages 695-709, August.
    6. Gagandeep Singh & Geetika Madaan, 2020. "An Empirical Study of the Economic Status of Punjab Concerning India," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 10(2), pages 107-117, February.

    More about this item

    Keywords

    Planning Commission; Economic Service; Schedule Tribe; Equitable Development; Finance Commission;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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