Integration in Global Value Chains — The Role of Service Inputs : Evidence from India
This paper investigates the relationship between the use of service inputs and integration in global value chains. Using macro and detailed firm-level data (for 1990–2017), the study documents the extent of India’s integration into global value cha...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/396541634653390686/Integration-in-Global-Value-Chains-The-Role-of-Service-Inputs-Evidence-from-India http://hdl.handle.net/10986/36431 |
| Summary: | This paper investigates the
relationship between the use of service inputs and
integration in global value chains. Using macro and detailed
firm-level data (for 1990–2017), the study documents the
extent of India’s integration into global value chains.
Older, larger, and more productive firms and firms with a
higher leverage ratio are more likely to be deeply
integrated into global value chains. Firms in the
information technology services and electronics industry are
more deeply integrated into global value chains, compared
with textiles. Services are the engine for many global value
chain industries as they help coordinate the different
stages of production across geographical locations. The
findings suggest that both the intensity of service usage as
well as the composition or type of service used are
important. Firms using service inputs, particularly complex
services and information technology and information
technology–enabling services intensively are typically more
deeply integrated into global value chains. |
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