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

  • Calì, Massimiliano
  • Sen, Kunal

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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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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