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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.

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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.

Item Type: Article
Keyword(s) / Subject(s): Indian economic growth, factor models, principal components, convergence, divergence, Indian states
School or Research Centre: Birkbeck Schools and Research Centres > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
Depositing User: Administrator
Date Deposited: 12 Sep 2011 08:39
Last Modified: 17 Apr 2013 12:21

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