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Is India shining?

Banerjee, Anurag and Banik, Nilanjan (2011) 'Is India shining?', Working Paper. Durham University, Durham.


In India, the popular perception is economic reforms have benefited the rich more than the poor leading to an unequal income distribution, as in Quah's twin peaks hypothesis. In this article we test this hypothesis by studying the spatial dynamics of income distribution. Using district-level per-capita income we find that the income distribution has not changed. The perception about economic reforms having benefitted only the rich is not correct because income growth across districts is positively correlated spatially. Thus there is a positive spatial multiplier effect on income and growth. In addition, we also identify physical infrastructure, human capital, and factories, as factors responsible for increase in income for both the rich, and the poor districts.

Item Type:Monograph (Working Paper)
Keywords:Districts of India, Income, Moran’s Index, Spatial analysis, JEL classifcation: C31 R12.
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Status:Not peer-reviewed
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Record Created:07 Dec 2012 10:36
Last Modified:07 Sep 2015 16:43

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