Title: Competitiveness of Indian manufacturing : Results from a firm-level survey
Abstract: The authors analyze survey data of firms located in 10 states in India to conclusively prove that investment climate matters: Firms located in states that do not foster a good investment climate perform significantly worse than those in states that do. In the process, the paper outlines a set of policy issues that countries and/or states need to pursue if they want to leverage greater openness and higher investments for sustained and significantly higher per capita income growth. In section 1, the authors define what is meant by .investment climate, and briefly review some of the Macro-evidence that shows the importance of investment climate for sustained growth and poverty reduction. Section 2 examines some of the microeconomic aspects of investment climate, and does so primarily by comparing India with other emerging market economies, using secondary sources of data. Section 3 goes into even greater microeconomic and institutional detail using the data generated through a recent, firm-level competitiveness survey for 10 Indian states that was jointly conducted by the Confederation of Indian Industry (CII) and the World Bank. Since the World Bank has conducted similar surveys in other emerging markets, the data allows for useful cross-country comparisons. Section 4 then uses the Indian survey data to correlate differences in firm productivity with investment climate, at various levels of disaggregation. Section 5 concludes the article.
Publication Year: 2002
Publication Date: 2002-01-01
Language: en
Type: article
Access and Citation
Cited By Count: 35
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot