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- W2150302229 abstract "Executive Summary There are substantial disparities across India‟s southern and northern states (Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh) in terms of fundamental economic phenomena such as per capita net state domestic product, rural and urban poverty rates, and investment flows, with the southern states taking a lead over their northern counterparts. In this paper, we attempt to understand what factors have caused these differences. We examine human capabilities, skills and awareness, resources and the efficiency of their utilisation; extent of urbanisation; good governance, including law and order; and infrastructure across the two groups of states. With respect to the factors representing human capabilities – literacy, infant mortality, stock of graduates, enrolment in technical courses, population in working age group, number of higher educational institutions, and infrastructure such as installed capacity, households with electricity and telephone penetration, we find that the southern states have an advantage when compared to the northern states. The same is true with respect to factors indicating law and order, such as the proportion of cases pending trial in court. We estimate the per capita net state domestic product (NSDP) as being dependent on the lagged form of these explanatory factors, given their endogeneity. We find that the lagged percentage of urbanisation is statistically significant in determining per capita NSDP in the northern and southern states, collectively and individually. The lagged per capita public expenditure is the other significant factor which determines per capita NSDP in the case of the full sample, and the southern states. When we compare the results from the separate regressions for the northern and southern states, the law and order conditions, as indicated by the percentage of pending cases under trial in court, have a negative and significant impact on per capita income in the states. As far as human capability indicators are concerned, in the case of the northern states, the literacy 1 The authors thank Samuel Paul for his comments regarding an earlier draft. This paper draws heavily from a" @default.
- W2150302229 created "2016-06-24" @default.
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- W2150302229 date "2009-01-01" @default.
- W2150302229 modified "2023-09-26" @default.
- W2150302229 title "Investment and Economic Opportunities: Urbanisation, Infrastructure and Governance in North and South India 1" @default.
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