Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174387
Authors: 
Basu, Deepankar
Das, Debarshi
Year of Publication: 
2015
Series/Report no.: 
Working Paper, University of Massachusetts, Department of Economics 2015-14
Abstract: 
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.
Subjects: 
profitability
investment
manufacturing
India
JEL: 
B51
E12
E22
Document Type: 
Working Paper

Files in This Item:
File
Size
439.98 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.