Reforms and regional inequality in India
- 2007
- p.69-77.
- 24 Nov
This article analyses the impact of pro-market reforms on regional inequality in India, both at the aggregate and the sectoral level. It draws on the "new economic geography" literature that evaluates the impact of reforms on regional inequality in a country in terms of the centripetal and centrifugal forces generated in the economy. The results show that regional inequality in India remained largely unchanged during the 1980s but rose dramatically after the adoption of the reforms. This is mainly due to the fact that the per capita output convergence before the reforms and divergence afterwards. - Reproduced.