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Financial dependence, labour regimes and industry growth: Do creditor rights matter?

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  • Saibal Ghosh

    (Qatar Central Bank)

Abstract

Using 3-digit industry data at the state-level during 2009–2018, the paper assesses the impact of the Insolvency and Bankruptcy Code (IBC) on growth across industries with varying degrees of financial dependence. The findings show that IBC positively impacted industry growth, although this occurred by altering the capital-labour mix in favour of the latter. Robustness tests across industry type and state labour regimes support these findings.

Suggested Citation

  • Saibal Ghosh, 2023. "Financial dependence, labour regimes and industry growth: Do creditor rights matter?," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 25(2), pages 277-292, December.
    • Handle: RePEc:spr:jsecdv:v:25:y:2023:i:2:d:10.1007_s40847-023-00244-1
    DOI: 10.1007/s40847-023-00244-1
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    More about this item

    Keywords

    Insolvency and Bankruptcy Code; Financial dependence; Industry; Labour regime;
    All these keywords.

    JEL classification:

    • L - Industrial Organization
    • J - Labor and Demographic Economics
    • K - Law and Economics

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