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

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  • Calì, Massimiliano
  • Sen, Kunal

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.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 9 (September)
Pages: 1542-1557

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:9:p:1542-1557

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: state-business relations institutions economic growth Asia India;

References

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Cited by:
  1. Saha, Bibhas & Sen, Kunal & Maiti, Dibyendu, 2013. "Trade openness, labour institutions and flexibilisation: Theory and evidence from India," Labour Economics, Elsevier, vol. 24(C), pages 180-195.
  2. Amendolagine, Vito & Boly, Amadou & Coniglio, Nicola Daniele & Prota, Francesco & Seric, Adnan, 2013. "FDI and Local Linkages in Developing Countries: Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 50(C), pages 41-56.

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