Do Effective State Business Relations Matter for Economic Growth? Evidence from Indian States

Massimiliano Calì and Kunal Sen

World Development, 2011, vol. 39, issue 9, 1542-1557

Abstract: Summary Effective state-business relations are a set of highly institutionalised, responsive and public interactions between the state and the business sector. This paper examines the impact of effective state-business relations on economic growth across Indian states over the period 1985-2006. We propose a measure that captures the various dimensions of effective state-business relations at the sub-national level, and estimate standard growth regressions using dynamic panel data methods. Our results show that effective state-business relations contribute significantly to economic growth and appear to be driven by the intensity of the interactions between the state and the private sector.

Keywords: state-business; relations; institutions; economic; growth; Asia; India (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (20)

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