A meta-analysis on the effects of internal migration on economic growth and convergence in the Indian states

Abstract

This paper examines the trajectory of internal migration and its impact on growth leading to convergence in India. The analysis is based on secondary data sourced from the Reserve Bank of India, Census and Economic and Political Weekly Research Foundation. It captures the data for a period of 20 years (1991-2011). An initial review indicates internal migration in the form of intra-state migration is very high compare to inter-state migration. The analysis of convergence/divergence suggests dispersion among states has increased in the concerned period. Similarly, absolute β-convergence indicate that rich states are growing faster than poor states. However, when conditional convergence is tested by various variables, conditional convergence among states is evident. However, migration and literacy rate as important indicator not producing the expected results, as migration which is expected to be negatively correlated to economic growth, is positive. The coefficient of the initial level of per capita income is found to be statistically significant, implying conditional convergence across Indian states during 1991-2011. Further, policy makers need to consider migration, literacy rate, investment, and population growth as means to reduce economic disparities among states. Moreover, migration should be encouraged for economic growth and broader convergence.