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

Type Working Paper - Economics Department Working Paper Series
Title Profitability or Industrial Relations: What Explains Manufacturing Performance Across Indian States?
Author(s)
Publication (Day/Month/Year) 2017
URL http://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1218&context=econ_workingpaper
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.

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