Digitalization and global value chain participation: firm-level evidence from Indian manufacturing

Ketan Reddy () and Subash Sasidharan ()
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Ketan Reddy: Indian Institute of Management Raipur
Subash Sasidharan: Indian Institute of Technology Madras

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2023, vol. 50, issue 3, No 4, 574 pages

Abstract: Abstract We analyze the role of digital infrastructure in shaping the global value chain (GVC) participation of Indian manufacturing firms. To examine the digitalization and GVC nexus, a rich, firm-level, unbalanced panel of 4875 manufacturing firms from the past two decades is used to detail the rising significance of digital infrastructure in the Indian context and then to examine empirically the relationship between digitalization and GVCs. Employing a logit model, we observe a positive and significant association of digitalization on firms’ GVC participation. Further, subsample results highlight that digitalization promotes the integration of small firms and firms from low-technology industries into the GVC. Moreover, the findings of our analysis are robust to alternate measures of GVCs.

Keywords: Digitalization; Indian manufacturing; Global value chains (search for similar items in EconPapers)
JEL-codes: F14 F15 L86 O14 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s40812-023-00270-4

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