State-business relations

State-business relations in low income countries are seen as a key determinant of inclusive growth and of structural transformation – shifts in economic structure to more productive activities and sectors. Effective state-business relations can boost economic growth by increasing the rate and the productivity of investment.

State-business relations can take the form of formal, regular co-ordination or informal ad hoc interactions, and their scope can include the whole economy or target specific sectors, types of firms or policy processes.

This Topic Guide summarises some of the most rigorous available evidence on the key issues, debates and challenges of state-business relations, and discusses the implications for research, policy and programming.

About this Topic Guide

This Topic Guide was written by Kunal Sen, Professor of Development Economics and Policy at the University of Manchester.

GSDRC appreciates the contributions of: Alberto Lemma, Overseas Development Institute; Bob Rijkers and Lili Sisombat, World Bank; Vanishree Joseph, Indira Gandhi National Open University; Róisín Hinds and Brian Lucas, University of Birmingham; and Jonathan Bhalla, DFID. The production of this Topic Guide was supported by the UK Government’s Department for International Development (DFID).

Suggested citation

Sen, K. (2015). State-business relations: Topic guide. Birmingham, UK: GSDRC, University of Birmingham.