Dispute Incidence in Manufacturing and Co-Movements in Economic Activity : Evidence from India

The present paper examines the cyclicality of disputes in India. Using data on manufacturing sector at the 2-digit level for the period 1964-1997, the paper finds disputes to be pro-cyclical. The pro-cyclical effect was found to be numerically large in certain cases, even after controlling for regime changes and composition of disputes over the sample period. The pro-cyclicality of dispute was also found to be robust to alternative specifications of the economic activity variable