The "V-Factor": distribution, timing and correlates of the great Indian growth turnaround
Ghate, C. and Wright, Stephen (2012) The "V-Factor": distribution, timing and correlates of the great Indian growth turnaround. Journal of Development Economics 99 (1), pp. 58-37. ISSN 0304-3878.
We analyse a panel of output series for India, disaggregated by 15 states and 14 broad industry groups. Using principal components (Bai, 2004; Bai & Ng, 2004) we find that a single common "V-Factor" captures well the significant shift in the cross-sectional distribution of state-sectoral output growth rates since the the 2nd half of the 1980s. The timing of the turnaround implied by the V-Factor is more closely related to the pattern of policy reforms than has been found in previous research. Regression-based analysis also provides some insights into the uneven distribution of the turnaround across the Indian states.
|Keyword(s) / Subject(s):||Indian economic growth, factor models, principal components, convergence, divergence, Indian states|
|School:||Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics|
|Research Centre:||Applied Macroeconomics, Birkbeck Centre for|
|Date Deposited:||12 Sep 2011 08:39|
|Last Modified:||07 Dec 2016 14:53|
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