Kartik Rao

Assessing Bihar's economic growth: a Geweke causality analysis

Despite being one of the most backward Indian states in terms of gross domestic product (GDP) per capita, the state of Bihar recorded double-digit growth from 2005 to 2011. Although this growth turnaround has been recognised as something significant, the literature to date has not probed the causes that have driven Bihars growth story. In this context, this paper attempts to contribute to the growing interest and literature in studying the causal factors driving growth patterns in India at the sub-national level. Specifically, the paper employs a Geweke causality analysis to investigate the drivers of economic growth in Bihar from 2001 to 2011. By decomposing and examining the linear feedback between state-level economic growth and the vector consisting of law and order as well as fiscal variables, this paper finds that a combination of improvements in law and order as well as aid from the central government played an important role in Bihars economic turnaround in recent years.

How productive is the agricultural sector across Indian states

Purpose - – This paper aims to provide an up-to-date analysis of the productivity in the agricultural sector within the states and union territories of India. Despite agriculture’s diminishing role as a share of overall gross domestic product (GDP) in India, it plays a crucial role by providing a large proportion of jobs to the workforce. Recognising agriculture’s central role in the economy as well as the significant diversity between the states in terms of resources, this paper estimates the total factor productivity (TFP) for Indian crops at the state level from 2000 to 2010 using both the growth accounting and the Malmquist Index Data Envelopment Analysis methodologies. The results highlight the possibility of increasing production with existing technologies by focusing on efficient resource deployment and enhanced management techniques. Design/methodology/approach - – The paper utilizes both growth accounting and the Malmquist Index Data Envelopment Analysis methodologies to estimate the growth of TFP at the regional level at the sub-national level (for states and union territories). Findings - – The results highlight the wide variations in the performance of states with respect to growth in TFP for the period 2000-2010. At the regional level, the Western region experienced the largest TFP growth, while the Eastern region experienced the lowest. At the state level, Gujarat registered the highest TFP growth, while Bihar emerged as a laggard with the lowest growth in TFP. Practical implications - – The results highlight the possibility of increasing production with existing technologies by focusing on efficient resource deployment and enhanced management techniques. Originality/value - – Although most of the existing literature focuses on national level analysis for India, this paper provides an up-to-date analysis of the productivity in the agricultural sector within the states and union territories of India. Correspondingly, the results are more applicable for these sub-national economies and offer more relevant policy implications.