A large number of studies have tested whether per capita incomes are converging, either conditionally or unconditionally, across countries or across regions within countries. However, none of them has investigated the determinants of the speed of convergence when this speed can vary across economies. This study investigates the determinants of the speed of convergence across states within India. The results are inconsistent in several ways with the predictions of the Solow-Swan model. The Ramsey-Cass-Koopmans model fares better, but there are still some important inconsistencies.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics