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Profitability or Industrial Relations : What Explains Manufacturing Performance Across Indian States?

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  • Anirban Karak

    (Department of Economics, University of Massachusetts, Amherst)

  • Deepankar Basu

    (Department of Economics, University of Massachusetts, Amherst)

Abstract

We use a state-level panel data set for the period 1969-2005 to analyze the relative importance of profitability (rate of profit) and industrial disputes (man-days lost to all industrial disputes per worker) in explaining cross-state variations of manufacturing sector performance in India. Using three different measures of manufacturing performance – net value added, investment and employment – we find that profitability is more significant than industrial disputes in explaining the variation of manufacturing sector performance across Indian states. Classification-JEL: B50, C26, O10

Suggested Citation

  • Anirban Karak & Deepankar Basu, 2017. "Profitability or Industrial Relations : What Explains Manufacturing Performance Across Indian States?," UMASS Amherst Economics Working Papers 2017-01, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2017-01
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    References listed on IDEAS

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    More about this item

    Keywords

    manufacturing performance; profitability; industrial disputes;
    All these keywords.

    JEL classification:

    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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