State-business relations are relations between the public and private sectors. They 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. State-business relations in low income countries are seen as a key determinant of inclusive growth (employment-generating economic activities that increase incomes and workers’ productivity) and of structural transformation (shifts in economic structure to more productive activities and sectors). Effective state-business relations can have a positive impact on economic growth by increasing the rate and the productivity of investment.