Abstract
The stochastic income convergence hypothesis is examined for five BIMAROU (Bihar, Madhya Pradesh, Rajasthan, Orissa and Uttar Pradesh) states in India for the period 1960–2012 using the univariate Narayan and Popp (2010) unit root test with two structural breaks. The per capita incomes of all BIMAROU states, except Uttar Pradesh, are found to be stochastically converging in the long run. Significant structural breaks are detected in the relative per capita income series of the BIMAROU states. Most of the breaks spotted in the relative per capita income series correspond with periods of political uncertainty and regime change in the state elections.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
