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

It has been shown that long-term growth and development across countries is driven to a large extent by productivity growth. Several studies exist that have attempted to examine the effect of different factors influencing productivity growth using industries or firms as units of analysis.