Profitability and investment : evidence from India's organized manufacturing sector

by Basu, Deepankar, Das, Debarshi

Using a state-industry panel data set at the 3 digit national industrial classification (NIC) level of disaggregation for 19 major Indian states over the period 1983-84 to 2007-08, we analyze the contemporaneous and long run impacts of the rate of profit and its components - profit share, capacity utilization rate, and capacity-capital ratio - on investment. Our results show that: (a) the rate of profit has both short and long run positive impacts on investment; (b) the profit share and capacity-capital ratio have only long run positive impacts, and the capacity utilization rate has only a contemporaneous positive impact on investment.

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Year of publication:	2015 ; This version: August 30, 2015
Authors:	Basu, Deepankar ; Das, Debarshi
Publisher:	Amherst : Department of Economics, University of Massachusetts
Subject:	profitability \| investment \| manufacturing \| India \| Indien \| Investition \| Investment \| Industrie \| Manufacturing industries \| Rentabilität \| Profitability \| Gewinn \| Profit

Extent:	1 Online-Ressource (circa 37 Seiten) Illustrationen
Series:	Economics Department working paper series. - Amherst, Mass. : [Verlag nicht ermittelbar], ZDB-ID 2407593-0. - Vol. 2015-14
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/174387 [Handle]
Classification:	B51 - Socialist; Marxian; Sraffian ; E12 - Keynes; Keynesian; Post-Keynesian ; E22 - Capital; Investment (including Inventories); Capacity
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011522167