Employment and global value chain participation: the Indian experience

Basudeb Guha-Khasnobis, Anwesha Aditya () and Suvir Chandna
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Basudeb Guha-Khasnobis: United Nations Development Program
Anwesha Aditya: Indian Institute of Technology Kharagpur

International Journal of Economic Policy Studies, 2023, vol. 17, issue 1, No 3, 75-94

Abstract: Abstract The paper examines the impact of GVC participation and position on overall employment creation and skill composition of the Indian workforce during 1990–2015. Arellano-Bond GMM dynamic panel estimation reveals that the expansion of size of a sector (in terms of higher value added) failed to generate employment opportunities, especially for the educated unemployed. However, stronger backward linkage is found to have labour displacing effect whereas stronger forward linkage has created employment opportunities but for the unskilled workers. Furthermore, the downstream sectors are found to generate more employment opportunities, whereas the upstream sectors are more skill intensive.

Keywords: GVC; Upstreamness; Employment; GMM dynamic panel; Labour quality (search for similar items in EconPapers)
JEL-codes: C33 C67 F14 F16 F66 J08 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s42495-022-00092-7

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