Impact of Global Value Chains on Employment in India

Karishma Banga ()
Additional contact information
Karishma Banga: University of Cambridge, Postal: The Austin Robinson Building, Sidgwick Ave, Cambridge CB3 9DD, United Kingdom

Journal of Economic Integration, 2016, vol. 31, issue 3, 631-673

Abstract: With Global Value Chains increasingly shaping the current economic and political landscape, it has become vital to understand their implications for developing economies. This study covers the manufacturing, services, and agricultural sectors. Moreover, it examines the industry-level impact of participation in Global Value Chains on employment growth during 1995~2011. Using methodologies of fixed effects and generalized method of moments, it analyzes how increasing Foreign Value Added in output, Foreign Value Added in exports (backward linkages), and Domestic Value Added in exports of intermediate goods (forward linkages) can affect employment growth. The results reveal that higher backward linkages have negatively influenced employment growth, more so in the nonmanufacturing industries of India. However, higher forward linkages did not have any statistically significant impact on employment. In conclusion, with higher backward linkages displacing domestic labor and higher forward linkages not being able to boost employment, the net effect of Global Value Chains participation on employment growth in Indian industries has been negative.

Keywords: Global Value Chains; Employment in India; Generalized Method of Moments; Trade in Value Added (search for similar items in EconPapers)
JEL-codes: F14 F16 F66 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
http://www.e-jei.org/ Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0696

Access Statistics for this article

Journal of Economic Integration is currently edited by Seongeun Kim

More articles in Journal of Economic Integration from Center for Economic Integration, Sejong University Contact information at EDIRC.
Bibliographic data for series maintained by Yunhoe Kim ().