Articles by Sugata Marjit

Limits of Economic Analysis Sugata Marjit Analytical Development Economics: The Less Developed Economy Revisited by Kaushik Basu; Oxford University Press, Delhi, 1998; pp 361, Rs 495.

Sugata Marjit Chiranjib Neogi The current literature on regional convergence has centred on the empirical relationship between initial income and its long run growth rate found among the regions in the developed countries. The fundamental basis of the 'converging' outcome is the neo-classical assumption of the law of diminishing returns to capital In contrast to the conventional results of the developed countries, the present paper has found that Indian states have been diverging over the period of last 35 years, Moreover, this result does not nullify the role of planning through disbursement of development funds across the states. The Indian scenario exhibits interesting relationship between private and public capital in the regional contextLater a simple model is developed to highlight the relationship between growth and public investment.

Convergence in Regional Growth Rates Indian Research Agenda Sugata Marjit Sandip Mitra Restriction on resource movements plays an important role in justifying 'convergence' in regional income levels. The existing theories do not highlight its importance. After providing a critique of the Barro-Sala-I-Martin (1995) approach, the authors present a very preliminary study on the Indian states. It is observed that the states have been 'diverging' rather than converging in terms of their per capita income.

Bequest motives, imperfect capital market and lack of state patronage adversely affect the socially optimal degree of knowledge transfer. In fact the transition from a concentric patronage system to the market-based incentives in the absence of supportive insurance schemes could be detrimental to the healthy preservation of such a culture.