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State Business Relations and Performance of Manufacturing Sector in Andhra Pradesh

Author

Listed:
  • G. Alivelu

    (Centre for Economic and Social Studies)

  • K. Srinivasulu
  • M. Gopinath Reddy

Abstract

In this paper, we make an attempt to enquire into the politics of the government and business relation and how it affected the industrial development in general and expansion of manufacturing sector in particular in the state of Andhra Pradesh. In AP State Business Relations (SBR) have evolved gradually under different political regimes - from 'indifferent' SBR's during initial decades, passing through critical junctures in the form of 'active' and 'pro-active' phases and finally SBRs reaching its zenith during Chandrababu Naidu regime and there after continuing in the Congress regime. The SBRs in AP seen evolving through different political regimes and their impact on the performance of manufacturing sector is captured through both qualitative and quantitative sources. Examination of the secondary data reveals the dominance of registered manufacturing in the total manufacturing output of the state. Firm level perceptions reveal that the business associations play a major role in dissemination of information rather than lobbying the government. The small firms are at a disadvantage compared to large and medium firms.

Suggested Citation

  • G. Alivelu & K. Srinivasulu & M. Gopinath Reddy, 2010. "State Business Relations and Performance of Manufacturing Sector in Andhra Pradesh," Governance Working Papers 22773, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:govern:22773
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    References listed on IDEAS

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    1. T. O. Riecken, 1957. "Discussion," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 5(1), pages 32-34, March.
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    6. Kunal Sen & Dirk Te Velde, 2009. "State Business Relations and Economic Growth in Sub-Saharan Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 45(8), pages 1267-1283.
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    Cited by:

    1. te Velde Dirk Willem & Lemma Alberto, 2015. "State-business relations as drivers of economic performance," WIDER Working Paper Series 098, World Institute for Development Economic Research (UNU-WIDER).
    2. Saez Lawrence & Mahmood Zaad, 2016. "Business and labor market flexibility in India: the importance of caste," Business and Politics, De Gruyter, vol. 18(2), pages 171-198, August.

    More about this item

    Keywords

    State-business relations; political regimes; institutions; Manufacturing Sector;

    JEL classification:

    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • P00 - Economic Systems - - General - - - General

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