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Integration in Global Value Chains — The Role of Service Inputs : Evidence from India

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  • Manghnani,Ruchita
  • Meyer,Birgit Elisabeth
  • Saez,Juan Sebastian
  • Van Der Marel,Erik Leendert

Abstract

This paper investigates the relationship between the use of service inputs andintegration in global value chains. Using macro and detailed firm-level data (for 1990–2017), the study documents theextent of India’s integration into global value chains. Older, larger, and more productive firms and firms with ahigher leverage ratio are more likely to be deeply integrated into global value chains. Firms in theinformation technology services and electronics industry are more deeply integrated into global value chains, comparedwith textiles. Services are the engine for many global value chain industries as they help coordinate the differentstages of production across geographical locations. The findings suggest that both the intensity of service usage aswell as the composition or type of service used are important. Firms using service inputs, particularly complexservices and information technology and information technology–enabling services intensively are typically moredeeply integrated into global value chains.

Suggested Citation

  • Manghnani,Ruchita & Meyer,Birgit Elisabeth & Saez,Juan Sebastian & Van Der Marel,Erik Leendert, 2021. "Integration in Global Value Chains — The Role of Service Inputs : Evidence from India," Policy Research Working Paper Series 9813, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9813
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    References listed on IDEAS

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    4. Manghnani,Ruchita & Meyer,Birgit Elisabeth & Saez,Juan Sebastian & Van Der Marel,Erik Leendert, 2021. "Firm Performance, Participation in Global Value Chains and Service Inputs : Evidence from India," Policy Research Working Paper Series 9814, The World Bank.
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    Cited by:

    1. Yu, Chunjiao & Zhao, Jiaqi & Cheng, Shixiong, 2023. "GVC trade and business cycle synchronization between China and belt-road countries," Economic Modelling, Elsevier, vol. 126(C).

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