Convergence in Regional Growth Rates-Indian Research Agenda

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.