Does openness affect inequality?:A Case Study for India

Barua, Alokesh and Chakraborty, Pavel (2010) Does openness affect inequality?:A Case Study for India. Review of Development Economics, 14 (3). pp. 447-465. ISSN 1363-6669

Full text not available from this repository.

Abstract

This paper examines the impact of economic liberalization on interregional inequality in India. It has been observed in many studies that interregional inequality in India has been steadily increasing over time. This paper is a further confirmation of this result. We have tried to locate the cause of rising interregional inequality within the production structure of the economy and observed that it is positively and systematically related to the cross-regional inequalities in agriculture and manufacturing. This systematic relationship has further been examined from a structuralist viewpoint to unravel the factors determining manufacturing production across regions where we have found that trade openness is the key factor determining the manufacturing share in income across the regions. Our further enquiry into manufacturing and trade patterns has shown that the Herfindahl index of concentration has been increasing over time on both counts. This result, along with the findings of the structuralist model about disproportionate growth of manufacturing across regions, provides an explanation of the cause of rising interregional inequality in India.

Item Type:
Journal Article
Journal or Publication Title:
Review of Development Economics
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/3300/3305
Subjects:
ID Code:
89524
Deposited By:
Deposited On:
09 Jan 2018 11:22
Refereed?:
Yes
Published?:
Published
Last Modified:
25 Feb 2020 08:10