Re-examination of convergence hypothesis among Indian states in panel stationarity testing framework with structural breaks

C-Tier
Journal: Applied Economics
Year: 2018
Volume: 50
Issue: 3
Pages: 268-286

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article examines the conditional income convergence hypothesis for 17 major states in India for the period of 1960–2012. Univariate stationarity tests without structural breaks provide evidence against the convergence hypothesis. However, when two or more structural breaks are applied in per capita income series, the incomes of around 11–13 states are found to stochastically converge to the national average. This finding supports the convergence hypothesis for the panel as a whole after accounting for two data features, cross-sectional dependence and structural breaks in incomes, using a unified panel stationarity testing framework.

Technical Details

RePEc Handle
repec:taf:applec:v:50:y:2018:i:3:p:268-286
Journal Field
General
Author Count
2
Added to Database
2026-01-26