July 03, 2017

Will GST Exacerbate Regional Divergence?

Visiting Senior Fellow Praveen Chakravarty and Resident Senior Fellow Vivek Dehejia, write for the Economic and Political Weekly, where they extend their regional diversity research to look at the possible effects of the Goods and Services tax on regional divergence in the outcomes.

They use the “nightlights” luminosity data set as a proxy for gross domestic product per capita, to conduct their analysis which concludes that, the goods and services tax(GST), contrary to the optimists, is likely to further exacerbate, rather than ameliorate, regional income disparities, marking the need for a turn to “place-based” economic policies.

Topic : Transitions / In : Journal Papers
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