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

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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.
Type
Working Paper
Date
2017
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UMass Amherst Open Access Policy
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