Effective State-Business Relations, Industrial Policy and Economic Growth


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.


Overseas Development Institute, London, UK, ISBN 978-1-907288-28-9, 32 pp.

Effective State-Business Relations, Industrial Policy and Economic Growth

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