It is often suggested that the way in which state and business are organised and interact drive economic performance, but a major research question is how this can be substantiated (this is a companion piece to Adrian Leftwich's analysing the politics of state-business relations - Discussion Paper 23a). A major challenge for economic research on SBRs is to understand the relationship between state-business relations and economic performance. This note suggests how this might be done, but does not aim to be prescriptive. The structure of this note is as follows. Section 2 discusses economic theory and how state-business relations can affect growth. Empirical research then needs to estimate the effects, which depends on measurement of SBRs (Section 3) and an estimation and identification strategy (Section 4). Section 5 discusses the role of the global financial crisis and Section 6 concludes.
Discussion Paper Series, Research Programme Consortium for Improving Institutions for Pro-Poor Growth, Manchester, UK, No. 23b, 14 pp.