Does Distance Matter in Convergence Among Indian States?

We investigate convergence among Indian states between 1981 and 2016 using the distance of any state from the leading state as our key variable. We focus on the role of three major sectors—agriculture, manufacturing, and infrastructure—in achieving convergence. Prima facie, we do not find any firm evidence of convergence in our dataset. However, unit root tests both at the state level and in panel data confirm convergence. Considering the three main sectors strengthens our findings, indicating that an increase in the relative income gap with the leading state is associated with a decrease in the Distance variable. This is consistent with the notion of convergence. Agriculture, Manufacturing, and Infrastructure variables demonstrate statistically significant relationships with distance, and each has its own individual impact, in terms of magnitude and direction, on convergence. Additionally, we find that the overall effect of each of these three major variables is actually dependent on the distance. Our results remain robust to alternative estimation methods.

Authors

Institutions

Publication Details

Journal
Asian Development Review
Published
2025-08-11
DOI
https://doi.org/10.1142/s011611052550026x
Primary Topic
Economic Growth and Productivity
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Does Distance Matter in Convergence Among Indian States?

Chitrakalpa Sen, Subaran Roy
Asian Development Review
Economic Growth and Productivity
article

Does Distance Matter in Convergence Among Indian States?

Chitrakalpa Sen, Subaran Roy
article en

Abstract

We investigate convergence among Indian states between 1981 and 2016 using the distance of any state from the leading state as our key variable. We focus on the role of three major sectors—agriculture, manufacturing, and infrastructure—in achieving convergence. Prima facie, we do not find any firm evidence of convergence in our dataset. However, unit root tests both at the state level and in panel data confirm convergence. Considering the three main sectors strengthens our findings, indicating that an increase in the relative income gap with the leading state is associated with a decrease in the Distance variable. This is consistent with the notion of convergence. Agriculture, Manufacturing, and Infrastructure variables demonstrate statistically significant relationships with distance, and each has its own individual impact, in terms of magnitude and direction, on convergence. Additionally, we find that the overall effect of each of these three major variables is actually dependent on the distance. Our results remain robust to alternative estimation methods.

Asian Development ReviewVol. 42(03)
The NorthCap University (IN), O. P. Jindal Global University (IN)
Openalex Percentile: Top 71%
Economic Growth and Productivity
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.