Empirical studies on total factor productivity growth (TFPG) in developing countries highlight trade open-ness, research and development and market structure as being the most important determinants of TFPG. The role of institutions remains overlooked in the literature on the determinants of...

This paper analyses the productivity performance of the Indian manufacturing sector using unit level data, which is aggregated at four-digit industry level for the period 1994-95 to 2004-05 for 15 major states. The study focuses on both the organized and unorganized segments of the manufacturing...

It is commonly argued that a better investment climate reform – that is, lower distortions in the institutional, policy and regulatory environment in which firms operate - lead to discernible improvements in firm performance. In this paper, we argue that effective state business relations...

This paper examines the role of the external institutional environment captured by effective state-business relations on firm performance. By effective state-business relations, we mean a set of highly institutionalized, responsive and public interactions between the state and the business...

Measurement error is an enormous problem in empirical work. In some types of analysis, it is often ignored for various reasons. In some others, however, it cannot be ignored because it affects the results of analysis significantly. We use a simple procedure to estimate the extent of measurement...

In response to the economic, natural, and political crisis that enveloped Indonesia from August 1997 (beginning of depreciation) to May 1998 (resignation of Soeharto), the new government announced support for a set of “safety net” (JPS) programs in July 1998 budget. These included: (a)...

The social impacts of Indonesia’s crisis, while serious, have fortunately been less dramatic than early reports suggested. Rather than the universal devastation in poverty, employment, education and health so widely predicted and repeated in the media, new data reporting on conditions as of...