The “V-Factor”: Distribution, Timing and Correlates of the Great Indian Growth Turnaround Volume 3 Jena Economic Research Papers 2009-02-01 2009 2007 2009-010 Economic Growth Factor Models Principal Components Convergence Divergence Indian States Following Bai (2004) and Bai and Ng (2004) we estimate a common factor representation of a panel of output series for India, disaggregated by 15 states and 14 broad industry groups. We find that a single common "V-Factor" accounts for a large part of the significant shift in the cross-sectional distribution of state-sectoral output growth rates since the mid -1980s. The time profile of the V-Factor appears to be closely related to trade liberalization. jportal_jpjournal_00000016 2009-02-02T15:27:05.058Z 2010-12-17T11:53:56.701Z