The Effects of Space on Inter-State Growth Dynamics and Income Disparities in India - Modeling the Simultaneous Growth of a System of Spatial Units

Abstract

This dissertation examines the effects of spatial-specific conditions on trends in inter-state disparities in a sample of 17 Indian states. It employs an extended Lotka-Volterra model to estimate the magnitude and direction of inter-state growth dynamics and the long run collective behavior of this system of states. The study evaluates the estimates of growth effects or inter-state growth dynamics and offers meaningful insights into their association with the varying levels and rates of growth of income per capita of states in the sample. It also models and compares growth effects that are driven by geographical proximity with those that are driven by structures that are equivalent. There are several significant contributions of this dissertation. First, it develops a new methodology that makes it possible to model spatial and, more significantly, structural dynamic spillover effects among spatial units. Second, it provides new insight into the relationship between divergent tendencies in the Indian economy (despite a long history of India's attempt to deploy a generally balanced growth policy) and both their spatial and structural relations. And third, the empirical findings show that the methodology enables a deeper insight into potential policy prescriptions for the nation, its states and combinations of states.