Regional Disparities in the Development Process: The Theoretical Perspective and the India Experience

Abstract

Development process often emerges in a few regions or pockets, and then generally gets spread to other parts over time. But whether developed regions continue to remain ahead of the rest of the regions of a country or regions tend to converge in their development attainment over time is a much debated issue in development economics. Whilesome theories suggest increasing regional disparities over time, neoclassical theories suggest that diminishing returns tend to produce convergence. In view of this debate the empirical evidence of whether regional development has tended to increase or decrease assumes significance. The present paper first presents a review of the theoretical debate. With the theoretical backdrop in place, the empirical studies on India's experience are discussed.