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Anatomizing India’s Presence in Automotive Global Value Chains

Author

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  • Ankita Dash
  • Rupa Chanda

Abstract

Global value chains (GVCs) are the modus operandi of contemporary international trade and production. However, the operational underpinnings of what facilitates or hinders participation of firms in their respective sectoral GVCs are surprisingly understudied. This article attempts to discover the potential factors—ranging from regulatory, institutional, technological, trade-related and financial to sectoral, and input-related elements—affecting GVC participation of automotive firms in India. A firm-level field survey was undertaken to better understand firms’ perceptions regarding these factors. The findings were analysed using principal component analysis (PCA) and partial least squares structural equation modelling (PLS-SEM), which revealed that certain policies such as state government initiatives and the Competition Act, as well as trade facilitation measures like standardisation of procedural requirements and trade agreements were the most significant factors aiding firms’ participation in automotive GVCs, while institutional, technological and input-related aspects were deterrents to such participation. Our findings have important implications for policymaking in the country for encouraging greater GVC participation of firms, especially small and medium enterprises. JEL Codes: F14, F6

Suggested Citation

  • Ankita Dash & Rupa Chanda, 2022. "Anatomizing India’s Presence in Automotive Global Value Chains," Foreign Trade Review, , vol. 57(4), pages 429-451, November.
    • Handle: RePEc:sae:fortra:v:57:y:2022:i:4:p:429-451
    DOI: 10.1177/00157325211039909
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    More about this item

    Keywords

    Firm level analysis; global value chains participation; Indian automotive sector;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F6 - International Economics - - Economic Impacts of Globalization

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