Authors:
Nesiya Josephine and P.K. Santhosh Kumar
Nesiya Josephine, Centre for Budget Studies, School of Social Science, Cochin University of Science and Technology,Kochi-22P.K. Santhosh Kumar, Director and Associate Professor in Economics,Centre for Budget Studies, School of Social Science, Cochin University of Science and Technology,Kochi-22, Email: director.cbs@cusat.ac.in
The convergence dynamics among Indian states have been a subject of profound debate among researchers for several decades. This study presents a comprehensive analysis of the convergence phenomenon among t5 states in India. The states are classified into four distinct groups based on their average growth rates over the period spanning from 2005 to 20t9. Employing advanced panel cointegration methods, including the Pedroni residual cointegration test, Johansen trace test, JMOlS, and Panel YECM, this research investigates the patterns of convergence among fiscal, social, and infrastructure−related variables. The data analysis reveals compelling evidence of convergence and divergence trends across the identified groups. The study identifies clusters of states experiencing similar growth patterns through rigorous statistical techniques, shedding light on the underlying mechanisms driving their economic trajectories. Moreover, it discerns distinct patterns of divergence in certain vital variables, signaling variations in economic performance and policy outcomes among the states. The findings of this research contribute to a nuanced understanding of the complex dynamics of economic growth and development across the diverse landscape of Indian states. The insights from this study may assist policymakers in formulating region−specific strategies to promote inclusive growth and equitable development across the country. Jurthermore, adopting sophisticated panel cointegration methods paves the way for a more robust and accurate convergence analysis among subnational entities, thus enhancing the scope and quality of future research in this domain.
Keywords: Convergence, Panel cointegration, Panel unit root, Pedroni residual cointegration, Panel YECM
Received on: 26/01/2023, Revised on: 02/02/2023, Accepted on: 09/02/2023, Published on: 05/05/2023
SMS Journal of Business Management