IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/9813.html
   My bibliography  Save this paper

Integration in Global Value Chains — The Role of Service Inputs : Evidence from India

Author

Listed:
  • Manghnani,Ruchita
  • Meyer,Birgit Elisabeth
  • Saez,Juan Sebastian
  • Van Der Marel,Erik Leendert

Abstract

This paper investigates the relationship between the use of service inputs andintegration in global value chains. Using macro and detailed firm-level data (for 1990–2017), the study documents theextent of India’s integration into global value chains. Older, larger, and more productive firms and firms with ahigher leverage ratio are more likely to be deeply integrated into global value chains. Firms in theinformation technology services and electronics industry are more deeply integrated into global value chains, comparedwith textiles. Services are the engine for many global value chain industries as they help coordinate the differentstages of production across geographical locations. The findings suggest that both the intensity of service usage aswell as the composition or type of service used are important. Firms using service inputs, particularly complexservices and information technology and information technology–enabling services intensively are typically moredeeply integrated into global value chains.

Suggested Citation

  • Manghnani,Ruchita & Meyer,Birgit Elisabeth & Saez,Juan Sebastian & Van Der Marel,Erik Leendert, 2021. "Integration in Global Value Chains — The Role of Service Inputs : Evidence from India," Policy Research Working Paper Series 9813, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9813
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/396541634653390686/pdf/Integration-in-Global-Value-Chains-The-Role-of-Service-Inputs-Evidence-from-India.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Costinot, Arnaud, 2009. "On the origins of comparative advantage," Journal of International Economics, Elsevier, vol. 77(2), pages 255-264, April.
    2. Cristina Constantinescu & Aaditya Mattoo & Michele Ruta, 2020. "The Global Trade Slowdown: Cyclical or Structural?," The World Bank Economic Review, World Bank, vol. 34(1), pages 121-142.
    3. Pinelopi K Goldberg & Amit K Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Multiproduct Firms and Product Turnover in the Developing World: Evidence from India," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 1042-1049, November.
    4. Manghnani,Ruchita & Meyer,Birgit Elisabeth & Saez,Juan Sebastian & Van Der Marel,Erik Leendert, 2021. "Firm Performance, Participation in Global Value Chains and Service Inputs : Evidence from India," Policy Research Working Paper Series 9814, The World Bank.
    5. Joseph F. Francois, 1990. "Trade in Producer Services and Returns Due to Specialization under Monopolistic Competition," Canadian Journal of Economics, Canadian Economics Association, vol. 23(1), pages 109-124, February.
    6. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 225-238.
    7. Francois, Joseph F, 1990. "Producer Services, Scale, and the Division of Labor," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 715-729, October.
    8. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
    9. Timmer, Marcel P. & Los, Bart & Stehrer, Robert & de Vries, Gaaitzen J., 2016. "An Anatomy of the Global Trade Slowdown based on the WIOD 2016 Release," GGDC Research Memorandum GD-162, Groningen Growth and Development Centre, University of Groningen.
    10. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    11. Goldar, Bishwanath & Banga, Rashmi & Banga, Karishma, 2018. "India’s Linkages into Global Value Chains: The Role of Imported Services," India Policy Forum, National Council of Applied Economic Research, vol. 14(1), pages 107-172.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu, Chunjiao & Zhao, Jiaqi & Cheng, Shixiong, 2023. "GVC trade and business cycle synchronization between China and belt-road countries," Economic Modelling, Elsevier, vol. 126(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meyer, Birgit, 2020. "How deep is your love? Innovation, Upgrading and the Depth of Internationalization," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224584, Verein für Socialpolitik / German Economic Association.
    2. Laisney, François & Pohlmeier, Winfried & Staat, Matthias, 1991. "Estimation of labour supply functions using panel data: a survey," ZEW Discussion Papers 91-05, ZEW - Leibniz Centre for European Economic Research.
    3. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    4. Chen, Yi-Yi & Schmidt, Peter & Wang, Hung-Jen, 2014. "Consistent estimation of the fixed effects stochastic frontier model," Journal of Econometrics, Elsevier, vol. 181(2), pages 65-76.
    5. Marco Alfò & Lorenzo Carbonari & Giovanni Trovato, 2020. "On the Effects of Taxation on Growth: an Empirical Assessment," CEIS Research Paper 480, Tor Vergata University, CEIS, revised 08 May 2020.
    6. Jan Brenner, 2007. "Parental Impact on Attitude Formation - A Siblings Study on Worries about Immigration," Ruhr Economic Papers 0022, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    7. Sheahan, Megan & Black, Roy & Jayne, T.S., 2013. "Are Kenyan farmers under-utilizing fertilizer? Implications for input intensification strategies and research," Food Policy, Elsevier, vol. 41(C), pages 39-52.
    8. Costa-Font, Joan & Vilaplana-Prieto, Cristina, 2022. "Health shocks and housing downsizing: How persistent is ‘ageing in place’?," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 490-508.
    9. Céline Nauges & Jon Strand, 2017. "Water Hauling and Girls’ School Attendance: Some New Evidence from Ghana," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 65-88, January.
    10. Lionel WILNER, 2019. "The Dynamics of Individual Happiness," Working Papers 2019-18, Center for Research in Economics and Statistics.
    11. Schupp, Fabian & Silbermann, Leonid, 2017. "The Role of Structural Funding for Stability in the German Banking Sector," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168166, Verein für Socialpolitik / German Economic Association.
    12. Joseph Francois & Douglas R. Nelson, 2000. "Victims of Progress: Economic Integration, Specialization, and Wages for Unskilled Labor," Tinbergen Institute Discussion Papers 00-065/2, Tinbergen Institute.
    13. Vigren, Andreas, 2020. "The Distance Factor in Swedish Bus Contracts How far are operators willing to go?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 188-204.
    14. Hernández-Quevedo, Cristina & Jones, Andrew M. & Rice, Nigel, 2008. "Persistence in health limitations: A European comparative analysis," Journal of Health Economics, Elsevier, vol. 27(6), pages 1472-1488, December.
    15. Gayle, Wayne-Roy & Namoro, Soiliou Daw, 2013. "Estimation of a nonlinear panel data model with semiparametric individual effects," Journal of Econometrics, Elsevier, vol. 175(1), pages 46-59.
    16. Castiglione, Concetta & Infante, Davide & Zieba, Marta, 2023. "Public support for performing arts. Efficiency and productivity gains in eleven European countries," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    17. Mathias Sinning & Shane Worner, 2010. "Inter-ethnic Marriage and Partner Satisfaction," Ruhr Economic Papers 0221, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    18. Sabine Herrmann & Dubravko Mihaljek, 2010. "The determinants of cross-border bank flows to emerging markets: new empirical evidence on the spread of financial crises," BIS Working Papers 315, Bank for International Settlements.
    19. Bhattacharya, Mita & Okafor, Luke Emeka & Pradeep, V., 2021. "International firm activities, R&D, and productivity: Evidence from Indian manufacturing firms," Economic Modelling, Elsevier, vol. 97(C), pages 1-13.
    20. Ahn, Seung C. & Schmidt, Peter, 1995. "Efficient estimation of models for dynamic panel data," Journal of Econometrics, Elsevier, vol. 68(1), pages 5-27, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:9813. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.