Effective State-Business Relations, Industrial Policy and Economic Growth

Abstract

This collection of essays by internationally distinguished scholars discusses the nature of state-business relations (SBRs) and the links between SBRs and economic performance. Presented as a series of IPPG-ODI briefings, it is the result of state-business relations work within the Research Programme Consortium for Improving Institutions for Pro-Poor Growth (IPPG) and also features other research. All except chapters 2, 7, 9 and 11 were authored by IPPG. This publication consists of three main parts. Part A introduces theoretical aspects of the study of SBRs. Essays on: -Effective state-business relations, industrial policy and wealth creation -Optimal framework for state-business relations Part B examines two technical and methodological aspects that have been at the forefront of the study of SBRs: how to measure SBRs and how to deal with endogeneity concerns in the relationship between SBRs and economic performance. This part is designed specifically for quantitative specialists. Essays on: -Measuring state-business relations in Africa -Measuring state-business relations in Indian states -Are effective relationships between the state and business the cause or effect of improved economic performance? -Addressing endogeneity in state-business relations across Indian states. Part C discusses the findings, evidence and policy suggestions of IPPG research on SBRs and major work related to SBRs. Essays on: -Managed latecomer strategies vs. political capture: Can developing countries handle selective business promotion? -State-business relations and economic performance in sub-Saharan Africa -How state-business relations trumps market forces in determining commercial success -From collusion to collaboration: State-business relations and economic performance in India -State-business relations and investment in Egypt A set of conclusions follows