India's Interstate Poverty Dynamics
IMF Working Paper No. WP/02/172
20 Pages Posted: 6 Dec 2004
Date Written: March 2001
India's significant but slow progress in reducing poverty at the national level, masks substantial disparity in the incidence of poverty at the state level. This paper provides a description of the trends in interstate differences in rural poverty for the period 1978-97. In doing so certain stylized facts emerge. Among these facts are (i) growth has been pro poor, and quite strongly in the post-1991 reform period; and (ii) while in the pre-reform period both growth and the nongrowth factors affecting poverty were forces of convergence, i.e., they acted to narrow interstate differences in poverty, in the post-reform period, the effects of the two sets of variables decoupled - although growth continued to be a force of convergence, nongrowth factors widened interstate differentials.
Keywords: Regional poverty, growth
JEL Classification: C140, I320
Suggested Citation: Suggested Citation