Profitability or Industrial Relations: What Explains Manufacturing Performance Across Indian States?

Anirban Karak () and Deepankar Basu ()
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Anirban Karak: Department of Economics, University of Massachusetts, Amherst
Deepankar Basu: Department of Economics, University of Massachusetts, Amherst

UMASS Amherst Economics Working Papers from University of Massachusetts Amherst, Department of Economics

Abstract: We use a state-level panel data set for the period 1969-2005 to analyze the relative importance of profitability (rate of profit) and industrial disputes (man-days lost to all industrial disputes per worker) in explaining cross-state variations of manufacturing sector performance in India. Using three different measures of manufacturing performance – net value added, investment and employment – we find that profitability is more significant than industrial disputes in explaining the variation of manufacturing sector performance across Indian states. Classification-JEL: B50, C26, O10

Keywords: manufacturing performance; profitability; industrial disputes (search for similar items in EconPapers)
Date: 2017-01-24
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