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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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    Cited by:

    1. Alberto Lemma & Dirk Willem te Velde, 2015. "State-business relations as drivers of economic performance," WIDER Working Paper Series wp-2015-098, World Institute for Development Economic Research (UNU-WIDER).
    2. Dirk Willem te Velde & Alberto Lemma, 2015. "State-business relations as drivers of economic performance," WIDER Working Paper Series 098, World Institute for Development Economic Research (UNU-WIDER).
    3. 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.

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    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • P00 - Political Economy and Comparative Economic Systems - - General - - - General

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