Urban Amenities, Productive Performance, and Global Value Chain Activities of Indian Firms

Subash Sasidharan, Shandre Thangavelu and Ketan Reddy
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Subash Sasidharan: Indian Institute of Technology Madras, Chennai, India
Shandre Thangavelu: Sunway University, The University of Adelaide
Ketan Reddy: Indian Institute of Management Raipur, India

No DP-2024-13, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: In this study, we explore the impact of urban amenities and the global value chain (GVC) participation of Indian firms on their firm performance using firm-level data. The study uses micro-level data matching firms to urban amenities at the district level based on their district location. Using a panel data framework, we observe a positive relationship between urban amenities and the GVC participation of firms on their productivity performance. We also observe a positive impact of GVC participation on the productivity of firms, especially on their total factor productivity. In terms of channels, we observe the GVC impact through educational amenities on the productivity of the firms. This suggests education amenities increase the productive performance of GVC firms. We also observe that financial amenities tend to increase the productive performance of GVC firms. The results of the paper highlight the importance of urban amenities in affecting the productive performance of Indian firms in GVC activities.

Keywords: Amenities Index; Global Value Chains: Manufacturing; TFP (search for similar items in EconPapers)
JEL-codes: F14 F15 L6 (search for similar items in EconPapers)
Date: 2024-06-18
New Economics Papers: this item is included in nep-bec, nep-eff, nep-sbm, nep-tid and nep-ure
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