Trends of Economic Growth and Population Change in Rajasthan: A District Level Panel Data Investigation

Abstract

The present paper highlights the trends of economic growth in the economy of Rajasthan and discusses its relative share in the national economy of India. It reviews the trends of year-wise growth rate of per capita net national product in India, per capita net state domestic product for Rajasthan state and per capita net district domestic product for districts of Rajasthan for the period of 2004-05 to 2012-13. It is indicative of the fact that the economy of Rajasthan has registered many ups and downs in the growth trajectory, but the current decade is a period of fair stability and positive growth. Results of Random Effects Model suggest that one percentage point increase in population will be able to increase per capita NDDP by 1.125 percent for twenty nine districts of Rajasthan. District dummies show that higher per capita district domestic product districts like Rajsamand and Jaisalmer have a significant positive association while Jaipur, Alwar, Jodhpur, Barmer, Bharatpur and Sikar have a significant negative association with population. In low fifteen per capita income districts only Nagaur district was observed as negatively and significantly associated with population, while Baran, Bundi and Sirohi have been observed as significantly and positively associated with the population.