Tackling poverty through balanced growth: A study on India

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Conference Article

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Springer Proceedings in Mathematics and Statistics


The relationship between growth, poverty and inequality lies as one the most debated and controversial topic in the area of development economics. India has an evidence of self-sustaining growth for more than two decades. The question often arises whether, this increment of positive growth is an implication of shining India. Why is growth more pro-poor in some states than others? We attempt to answer this question using a novel approach that allows for inter-regional dependence of poverty together with its major exogenous determinants such as the average level of income and income inequality. Based on a balanced panel data set on state level consumption data, our study upholds not only the trivial observations that mean per-capita consumption expenditure decreases the absolute poverty rates while the degree of inequality increases it, but also corroborates a significant positive inter-regional dependence of poverty as well as a positive association of poverty with the mean per-capita consumption expenditures of the ‘neighboring’ regions thus suggesting the importance of inter-regional inequality on poverty.

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