Economic Polarization in Madhya Pradesh: A District Wise Analysis
DOI:
https://doi.org/10.1956/jge.v11i2.387Keywords:
Employment, polarization, inequality, consumption expenditure, NSSO, WPR, inclusive growthAbstract
Economic polarization among different regions is common phenomenon in literature and it results into unequal growth and income inequalities within regions. Economists points out that whenever economies achieve higher growth they presumed that it would automatically trickle down to poor. Anderson (1964) and Aaron (1977) pointed out that there is an inverse relationship between economic growth and income distribution. So in this present paper we analyze economic polarization in Madhya Pradesh over the two decades 2000 and 2011 using per capita consumption expenditure (PCCE) and work participation rate (WPR). We show that multidimensional polarization (on rural-urban and region) has increased since the 2000. Overall, our results suggest that high growth witnessed by Madhya Pradesh since the bifurcation of it in the year 2000 has been associated with widening disparities within districts. Out of total 50 districts, same 15 numbers of districts is in high and middle income group and 20 are in low income group. Comparing MPCE and WPR trends, we find similarities but also some differences; our study contributes to the study of polarization in one of the grooming Bimaru state.    Â
References
Aylin Koç; AhmetYılmaz Ata and Zeynep Çirkin, Empirical Investigation on Globalization and Social Polarization: Cross Country Analysis (2013) International Journal of Economics and Financial Issues Vol. 3, No. 1, 2013, pp.206-213 ISSN: 2146-4138 www.econjournals.com
Bandyopadhyay, S. (2003) Polarization, stratification and convergence clubs: Some dynamics and explanations of unequal economic growth across Indian states. Mimeo, LSE
Brzezinski, Michal. (2013), “Income Polarization and Economic Growth†National Bank of
Poland Working Paper 147
Chakravarty, S. R. (2009) Inequality, Polarization and Poverty: Advances in Distributional Analysis (New York: Springer)
Himanshu, (2007) “Recent Trends in Poverty and Inequality: Some Preliminary Results,†Economic and Political Weekly, 42, pp. 497-508 (2007)
Juan Antonio Duro, (2005) another look to income polarization across countries Journal of Policy Modeling 27 (2005) 1001–1007
Kawadia, Ganesh and S.S. Philips (2014) ‘Shedding the Bimaru Tag: Madhya Pradesh, Bihar & Rajasthan’ Economic and Political Weekly, Vol. XLIX NO. 31, august 02, 2014
Lawrence Mishel, John Schmitt, and Heidi Shierholz (Jan. 4–6 2013), assessing the job polarization explanation of growing wage inequality, economic policy institute 202.775.8810 www.epi.org
Motiram, S. and N. Sarma (2011) ‘Polarization, Inequality and Growth: The Indian experience’ ECINEQ Working Paper 2011-225, Society for the Study of Economic Inequality
Noorbakhsh, Farhad, Spatial Inequality and Polarization in India (September 2003). Credit Research Paper No. 03/16. Available at SSRN: http://ssrn.com/abstract=482481 or http://dx.doi.org/10.2139/ssrn.482481
Schmidt, A. “Statistical Measurement of Income Polarization. A Cross-National Comparison†(University of Cologne, Germany 2000)
Sripad Motiram & Nayantara Sarma (2014) Polarization, Inequality, and Growth: The Indian Experience, Oxford Development Studies, 42:3, 297-318, DOI:10.1080/13600818.2014.897319 http://dx.doi.org/10.1080/13600818.2014.897319
Tapas Mishra, Mamata Parhi, Claude Diebolt, and Prashant Gupta (2010), do social polarization and stochastic shocks matter for Convergence speed of income?, Bureau of Economic Theory and Applications
