This dissertation aims to examine economic growth and income inequalities across the Indian state and discuss how growth impacts the inequality of income distribution while also looking into the socio- economic factors that play a role in this process.
Drawing on the time-series cross-section data for ten years (2010–2020) and econometrics, the study focuses on the factors like GSDP, Gini index of income inequality, literacy, and basic amenities. More specifically, the research will grasp whether economic growth within state increases or decreases inequality.
Analyzing the results of the study, it is established that establishment of more developed economy overall tends to enhance the level of living of people but this increased economic growth does not lead to the reduction in income disparity. For example, even highly industrialized states like Maharashtra and Gujarat exhibit high income inequality, though there are variations in other states—states with higher literacy and better access to basic services, for example, have been found to have lower levels of inequality.
The desegregation of assigned grades for such policies can be attributed to state level issues that can only be solved through policy interventions. Actions that provide equal chances of improving people’s quality of life and infrastructure in the less-developed areas may include the policies for equal access to the education, health care services, and the development of the necessary physical infrastructure. Therefore, this study highlights the relevance of the strategy of harmonizing economic growth with equity, and provides policy recommendations that may enable achieving more egalitarian levels of income distribution across the Indian states.
Inhaltsverzeichnis (Table of Contents)
- CHAPTER 1: INTRODUCTION
- CHAPTER 2: LITERATURE REVIEW
- 2.1 Theoretical Framework
- 2.1.1 Kuznets Curve Hypothesis
- 2.1.2 Neoclassical Growth Theory
- 2.1.3 Endogenous Growth Theory
- 2.2 Empirical Findings
- 2.2.1 General Findings on Growth and Inequality
- 2.2.2 Determinants of Income Inequality
- 2.3 Research Gap
- 2.4 Summary & Hypothesis Formation
- 2.1 Theoretical Framework
- CHAPTER 3: HYPOTHESES AND CONCEPTUAL FRAMEWORK
- 3.1 Hypotheses Development
- 3.2 Conceptual Model
- 3.3 Summary
- CHAPTER 4: METHODOLOGY
- 4.1 Data Sources
- 4.2 Research Design
- 4.3 Key Variables
- 4.3.1 Independent Variables
- 4.3.2 Dependent Variable
- 4.3.3 Control Variables
- 4.4 Model Specification
- 4.5 Data Visualization Strategy
- 4.6 Ethical Considerations
- 4.7 Limitations of the Methodology
- CHAPTER 5: RESULTS
- 5.1 Descriptive Statistics
- 5.2 Econometric Analysis
- 5.2.1 GSDP Lag Model
- 5.2.2 Economic Growth Lag Model
- 5.3 Comparative Analysis
- 5.4 Robustness Checks and Limitations
- 5.5 Summary of Results and Hypothesis Validation
- CHAPTER 6: DISCUSSION
- 6.1 Comparison with Literature
- 6.1.1 Consistency with the Kuznets Curve
- 6.1.2 Endogenous Theory of Growth and Role of Education
- 6.1.3 Empirical Findings and Discrepancy with Previous Research
- 6.2 Implications for Public Policy
- 6.2.1 Access to basic education and structures for students
- 6.2.2 Poverty reduction and safety nets
- 6.2.3 Progressive Taxation and Redistribution
- 6.3 Unanticipated Results
- 6.3.1 Limited Impact of Literacy on Inequality Reduction
- 6.3.2 Implication of Unemployment and Employment for Future Growth
- 6.4 Future Research Directions
- 6.4.1 Economic Impact of Globalization and Technological Change
- 6.4.2 Long-term effects of social policies
- 6.4.3 Urbanization and Income Distribution
- 6.1 Comparison with Literature
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This dissertation examines the relationship between economic growth and income inequality in India, using time-series cross-section data from 2010-2020. The study aims to determine whether economic growth at the state level increases or decreases income inequality and to identify the socioeconomic factors influencing this relationship.
- The impact of economic growth on income inequality in India.
- The role of socioeconomic factors (literacy, access to basic amenities) in shaping income distribution.
- Analysis of the Kuznets Curve hypothesis in the Indian context.
- Policy implications for achieving more egalitarian income distribution.
- Exploration of the limitations of current economic models in explaining income inequality.
Zusammenfassung der Kapitel (Chapter Summaries)
CHAPTER 1: INTRODUCTION: This chapter introduces the research topic, outlining the dissertation's objective to investigate the correlation between economic growth and income inequality across Indian states. It highlights the significance of understanding this relationship for policy formulation and improving living standards. The chapter sets the stage for the subsequent literature review, methodology, and analysis of the data collected from 2010 to 2020. The introduction also briefly touches upon the socioeconomic factors considered, such as literacy rates and access to basic amenities, anticipating their potential impact on income distribution. This sets a foundation for understanding the complexities of economic growth and its impact on society in India.
CHAPTER 2: LITERATURE REVIEW: This chapter presents a comprehensive overview of existing literature on the relationship between economic growth and income inequality. It explores various theoretical frameworks, including the Kuznets Curve hypothesis, neoclassical growth theory, and endogenous growth theory, providing a detailed analysis of their strengths and weaknesses in explaining income disparities. The chapter also reviews existing empirical studies on the topic, focusing on both general findings on the relationship between growth and inequality and the specific determinants of income inequality, identifying any research gaps in the literature. It concludes by formulating research hypotheses based on the identified literature gaps and sets the foundation for the subsequent research methodology.
CHAPTER 3: HYPOTHESES AND CONCEPTUAL FRAMEWORK: This chapter clearly defines the hypotheses guiding the research and constructs a conceptual framework. The hypotheses directly address the expected relationship between economic growth, measured through metrics like Gross State Domestic Product (GSDP), and income inequality, measured by the Gini index. The conceptual model illustrates the interactions between economic growth, socioeconomic factors (such as literacy rates and access to basic amenities), and income inequality. The chapter logically links the research hypotheses with the chosen variables, demonstrating how the data analysis will test the formulated research questions and provide a clear roadmap for the empirical investigation described in subsequent chapters.
CHAPTER 4: METHODOLOGY: This chapter details the research methodology employed in the study. It begins by describing the data sources used, which include time-series cross-section data spanning ten years (2010-2020) covering various Indian states. The research design, including the choice of econometric techniques used for data analysis, is meticulously explained. The chapter then defines the key variables, categorizing them as independent, dependent, and control variables, providing clear operational definitions for each. It also includes details on the model specification, explaining the econometric models used, and the rationale behind their selection. Finally, it addresses ethical considerations and acknowledges limitations inherent in the methodology employed, ensuring transparency and providing the reader with a complete understanding of the research process.
CHAPTER 5: RESULTS: This chapter presents the empirical findings of the study. It begins with descriptive statistics, summarizing the key characteristics of the data, and setting the stage for the in-depth econometric analysis. The econometric analysis examines the relationship between economic growth (as measured by GSDP and other growth-related indicators) and income inequality (as measured by the Gini index), employing various econometric models as described in Chapter 4. The chapter presents the results of the regression analysis, including statistical significance levels and effect sizes. The results are interpreted and compared across different states, and a robustness check is performed to evaluate the reliability of the findings. The chapter concludes with a summary of the results, indicating whether the hypotheses put forward were supported by the analysis, paving the way for the discussion and interpretation presented in Chapter 6.
Schlüsselwörter (Keywords)
Economic growth, income inequality, India, Gini index, Gross State Domestic Product (GSDP), Kuznets Curve, neoclassical growth theory, endogenous growth theory, literacy, basic amenities, public policy, socioeconomic factors, regression analysis, time-series cross-section data.
Häufig gestellte Fragen
What is the main topic of the "Language Preview" document?
The document focuses on the relationship between economic growth and income inequality in India, using time-series cross-section data from 2010-2020.
What are the key themes explored in the document?
Key themes include the impact of economic growth on income inequality in India, the role of socioeconomic factors in shaping income distribution, analysis of the Kuznets Curve hypothesis in the Indian context, policy implications for achieving more egalitarian income distribution, and exploration of the limitations of current economic models in explaining income inequality.
What are the chapters included in the document and what do they cover?
The document includes the following chapters: Introduction, Literature Review, Hypotheses and Conceptual Framework, Methodology, Results, and Discussion. The introduction sets the stage, the literature review examines relevant theories and empirical findings, the hypotheses and conceptual framework define the research questions and relationships, the methodology outlines the data and analytical techniques, the results present the empirical findings, and the discussion interprets the results and draws conclusions.
What theoretical frameworks are considered in the literature review?
The literature review explores the Kuznets Curve hypothesis, neoclassical growth theory, and endogenous growth theory.
What data sources are used in the research?
The research utilizes time-series cross-section data from 2010-2020, covering various Indian states.
What variables are used in the analysis?
Key variables include Gross State Domestic Product (GSDP) as a measure of economic growth, the Gini index as a measure of income inequality, and socioeconomic factors such as literacy rates and access to basic amenities as control variables.
What econometric techniques are employed in the analysis?
The research uses various econometric techniques to analyze the relationship between economic growth and income inequality, including regression analysis and potentially GSDP or Economic Growth Lag models.
What policy implications are discussed in the document?
Policy implications discussed include access to basic education and structures for students, poverty reduction and safety nets, and progressive taxation and redistribution.
What are some potential directions for future research mentioned in the document?
Future research directions include the economic impact of globalization and technological change, the long-term effects of social policies, and urbanization and income distribution.
What are the keywords associated with the document?
Keywords include: Economic growth, income inequality, India, Gini index, Gross State Domestic Product (GSDP), Kuznets Curve, neoclassical growth theory, endogenous growth theory, literacy, basic amenities, public policy, socioeconomic factors, regression analysis, time-series cross-section data.
- Arbeit zitieren
- Lavender Atieno (Autor:in), 2024, Relationship Between Economic Growth and Income Inequality in India, München, GRIN Verlag, https://www.grin.com/document/1522316
