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Abstract

In this paper, we study the role of relative spatial location of states on agricultural growth in India. We use different definitions of neighbourhood and through a Spatial Durbin Model in a dynamic panel framework, we find that district based weighing scheme best explains the spatial dependence. The channels through which spatial spill-over occur are rural literacy, roads, irrigation and income of neighbouring states. The other factors driving agricultural income growth in India are inputs, infrastructural support and agricultural diversification. Identification of these channels of spatial interdependence will have implications for policies aimed at reducing spatial differences across Indian states.

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