Regional Disparities, Growth and Divergence in Income in Karnataka

Abstract

This article not only analyses regional disparities of income but also growth experiences of different districts in Karnataka in the early period of this century. The study reveals that regional disparities in per capita district income in Karnataka have diverged between 1999–2000 and 2012–2013. However, our findings also show that there is conditional convergence of per capita district income in the state. Our district level results indicate that expansion of physical infrastructure, urban agglomeration and improvement of human and financial capital can be important factors in accelerating economic growth in the slow growing regions. The study also points to the conclusion that dependency on agriculture does not ensure regional convergence in the state under the present situation.