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Is India shining?

Banerjee, A. and Banik, N. (2014) 'Is India shining?', Review of Development Economics., 18 (1). pp. 59-72.


The popular perception about economic reforms having benefitted only the richer districts of India between 1999/2000 and 2004/2005 is investigated. Using the spatial dynamics of district-level per-capita income it was found that income distribution did not change between the years examined. It is argued that this is because of per-capita income across districts being spatially positively correlated. Physical infrastructure, human capital, and factories are identified as factors responsible for increase in income for both the rich as well as the poor districts. Infrastructure, physical or social, is a key component of growth in India. A policy impact analysis shows development of better drainage and potable water systems has a large impact on income. For the year 2001/02, it was found that for every 1% increase in closed drainage system and potable water, district-level median income increases by 1.39% and 0.21%, respectively.

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Publisher statement:This is the peer reviewed version of the following article: Banerjee, A. and Banik, N. (2014), Is India Shining?. Review of Development Economics, 18 (1): 59–72, which has been published in final form at This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Record Created:04 Jun 2014 10:20
Last Modified:24 Jan 2016 00:32

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