Political Federalism and Innovation: Are de jure Labor Regulations Absolute?
Asian Journal of Law and Economics, 2017, vol. 8, issue 3, 15
The importance of labour regulation in influencing innovative activity has attracted significant attention in the literature. What has not been adequately explored is the role played by different categories of such laws. In this context, employing state-level data for India during 1992–2010, we investigate how political federalism interacts with labour laws to influence innovative activity. Our findings suggest that although certain labour laws foster innovation, its complementarities with political federalism end up dampening innovation. These results call into question the widely held view of the innovation-enhancing effects of labour laws and suggest that the hitherto unaddressed political channel might have an important role to play in this regard.
Keywords: innovation; dispute resolution; employment protection; India (search for similar items in EconPapers)
JEL-codes: J08 K31 O31 P52 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.degruyter.com/view/j/ajle.2017.8.issue ... -0014.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bpj:ajlecn:v:8:y:2017:i:3:p:15:n:1
Ordering information: This journal article can be ordered from
Access Statistics for this article
Asian Journal of Law and Economics is currently edited by Noriyuki Yanagawa
More articles in Asian Journal of Law and Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().