Spatial inequality in standard of living (SoL) in India: a spatial econometric approach

The major emphasis of this study is showing the district-level inequality in the Standard of Living (SoL) in India. It shows the spatial effects and distribution aspect of SoL in India using various spatial econometric techniques e.g. Moran's I, LISA, spatial autoregressive model, GWR model and MGWR model to understand spatial inequality in India. Three clusters of districts having high SoL formed in North-western India, Western India and Southern India. These clusters formed due to urbanization, the spread effect of Delhi, the Green revolution in Punjab, the international trade link of Gujarat and Punjab, and impressive social sector development in southern India. The clusters of districts having low SoL mainly formed in the central, eastern and north-eastern parts of India. These are the area dominated by tribal communities having low socio-economic conditions and rural and agricultural populations with a severe resource-population mismatch. However, the Multiscale spatial regression supports that the level of urbanization, workforce structure, human capital, gender empowerment and group identity operates at a different geographic scale in determining the spatial heterogeneity of SoL. This study suggests that the government should focus on the lagging region and that policy responses should be cognizant of the multiple shades of spatial variation.