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Economic Polarization in Madhya Pradesh: A District Wise Analysis

Rekha Acharya, sweksha mahendra khobragade

Abstract


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.      


Keywords


Employment, polarization, inequality, consumption expenditure, NSSO, WPR, inclusive growth

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References


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