Economic reforms, growth and well-being: evidence from India

Abstract

This study examined economic well-being of sub-national units in India since the economic reforms. For this purpose, the study constructed well-being index for 17 major states of India for the period 1981-2011 based on five broad dimensions. Our results showed that the economic well-being of states has declined since the reforms. The inter-state disparities have increased and the states (except Punjab and West Bengal) which performed well prior to the reforms continued to perform well in the post-reform years too. In addition, our regression results for the high well-being and low well-being states revealed that the reforms have benefitted more developed high well-being states, rather than low well-being states. While human capital was found significantly and positively related to per capita incomes in both groups of the states, financial development was positively related in high well-being states, but a negative association was visible in the low well-being states.

Post reforms dynamics in India's labour market

“…A slew of studies provide substantial evidences that acceleration in GDP growth and faster structural transformation post 1993-94 in India's economy occurred mainly because of adoption of the neoliberal economic policies by the governments of India (Rodrik and Subramanian, 2004;Kohli, 2006;Bhalla, 2011;Bhagwati and Panagariya, 2013;Arora and Ratnasiri, 2015).…”

Post reforms dynamics in India's labour market

“…A slew of studies provide substantial evidences that acceleration in GDP growth and faster structural transformation post 1993-94 in India's economy occurred mainly because of adoption of the neoliberal economic policies by the governments of India (Rodrik and Subramanian, 2004;Kohli, 2006;Bhalla, 2011;Bhagwati and Panagariya, 2013;Arora and Ratnasiri, 2015).…”