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Employment and global value chain participation: the Indian experience

Author

Listed:
  • Basudeb Guha-Khasnobis

    (United Nations Development Program)

  • Anwesha Aditya

    (Indian Institute of Technology Kharagpur)

  • Suvir Chandna

Abstract

The paper examines the impact of GVC participation and position on overall employment creation and skill composition of the Indian workforce during 1990–2015. Arellano-Bond GMM dynamic panel estimation reveals that the expansion of size of a sector (in terms of higher value added) failed to generate employment opportunities, especially for the educated unemployed. However, stronger backward linkage is found to have labour displacing effect whereas stronger forward linkage has created employment opportunities but for the unskilled workers. Furthermore, the downstream sectors are found to generate more employment opportunities, whereas the upstream sectors are more skill intensive.

Suggested Citation

  • Basudeb Guha-Khasnobis & Anwesha Aditya & Suvir Chandna, 2023. "Employment and global value chain participation: the Indian experience," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 75-94, February.
    • Handle: RePEc:spr:ijoeps:v:17:y:2023:i:1:d:10.1007_s42495-022-00092-7
    DOI: 10.1007/s42495-022-00092-7
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    References listed on IDEAS

    as
    1. Aqib Aslam & Natalija Novta & Mr. Fabiano Rodrigues Rodrigues Bastos, 2017. "Calculating Trade in Value Added," IMF Working Papers 2017/178, International Monetary Fund.
    2. Pol Antras & Davin Chor & Thibault Fally & Russell Hillberry, 2012. "Measuring the Upstreamness of Production and Trade Flows," American Economic Review, American Economic Association, vol. 102(3), pages 412-416, May.
    3. Nicola Gagliardi & Benoît Mahy & François Rycx, 2021. "Upstreamness, Wages and Gender: Equal Benefits for All?," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 52-83, March.
    4. Pol Antràs, 2019. "Conceptual Aspects of Global Value Chains," NBER Working Papers 26539, National Bureau of Economic Research, Inc.
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    8. Jan Hagemejer & Joanna Tyrowicz, 2017. "Upstreamness of employment and global financial crisis in Poland: the role of position in the global value chains," GRAPE Working Papers 15, GRAPE Group for Research in Applied Economics.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    GVC; Upstreamness; Employment; GMM dynamic panel; Labour quality;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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