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Employment and global value chain participation: the Indian experience

Author

Listed:
  • Basudeb Guha-Khasnobis

    (United Nations Development Program)

  • Anwesha Aditya

    (Indian Institute of Technology Kharagpur)

  • Suvir Chandna

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.

Suggested Citation

  • Basudeb Guha-Khasnobis & Anwesha Aditya & Suvir Chandna, 2023. "Employment and global value chain participation: the Indian experience," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 75-94, February.
    • Handle: RePEc:spr:ijoeps:v:17:y:2023:i:1:d:10.1007_s42495-022-00092-7
    DOI: 10.1007/s42495-022-00092-7
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    References listed on IDEAS

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    1. Aqib Aslam & Natalija Novta & Mr. Fabiano Rodrigues Rodrigues Bastos, 2017. "Calculating Trade in Value Added," IMF Working Papers 2017/178, International Monetary Fund.
    2. Pol Antras & Davin Chor & Thibault Fally & Russell Hillberry, 2012. "Measuring the Upstreamness of Production and Trade Flows," American Economic Review, American Economic Association, vol. 102(3), pages 412-416, May.
    3. Nicola Gagliardi & Benoît Mahy & François Rycx, 2021. "Upstreamness, Wages and Gender: Equal Benefits for All?," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 52-83, March.
    4. Pol Antràs, 2019. "Conceptual Aspects of Global Value Chains," NBER Working Papers 26539, National Bureau of Economic Research, Inc.
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    6. Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Position In Global Value Chains: The Impact On Wages In Central And Eastern European Countries," GUT FME Working Paper Series A 53, Faculty of Management and Economics, Gdansk University of Technology, revised Jan 2022.
    7. Shuzhong Ma & Yinfeng Liang & Hongsheng Zhang, 2019. "The Employment Effects of Global Value Chains," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(10), pages 2230-2253, August.
    8. Jan Hagemejer & Joanna Tyrowicz, 2017. "Upstreamness of employment and global financial crisis in Poland: the role of position in the global value chains," GRAPE Working Papers 15, GRAPE Group for Research in Applied Economics.
    9. Banga, Karishma, 2016. "Impact of Global Value Chains on Employment in India," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 31(3), pages 631-673.
    10. C. Veeramani & Garima Dhir, 2019. "Reaping gains from global production sharing: Domestic value addition and job creation by Indian exports," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2019-024, Indira Gandhi Institute of Development Research, Mumbai, India.
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    Cited by:

    1. Gao, Peng & Zhang, Kunpeng & Zheng, Peng, 2024. "The impact of industrial digitization on the global value chains position: Evidence from China’ s industry sectors," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 147-162.
    2. Magdalena Olczyk & Marjan Petreski, 2024. "From Global Value Chains to Local Jobs: Exploring FDI-induced Job Creation in EU-27," Papers 2410.04160, arXiv.org.

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    More about this item

    Keywords

    GVC; Upstreamness; Employment; GMM dynamic panel; Labour quality;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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