Research Back

The Role of Digitalisation in Shaping India’s Global Value Chain Participation

COVID-19, digitalisation, India, industry and manufacturing

The Role of Digitalisation in Shaping India’s Global Value Chain Participation

This study investigates the role of digital infrastructure in shaping the global value chain (GVC) participation of Indian manufacturing firms. To examine the digitalisation and GVC nexus, a rich, firm-level, unbalanced panel of 4,875 manufacturing firms from the past 2 decades is employed to detail the rising importance of digital infrastructure in the Indian context and then to examine empirically the relationship between digitalisation and GVCs. Employing a logit model, a positive, significant impact of digitalisation is found regarding firms’ GVC participation. Further, subsample results highlight that digitalisation promotes integration of small firms and firms from low-technology industries into the GVC. The findings of the analysis are robust to alternate measures of the GVCs.

This research was conducted as a part of the project ‘ERIA Research on COVID-19’ at the Economic Research Institute for ASEAN and East Asia (ERIA).

The Role of Digitalisation in Shaping India’s Global Value Chain Participation

Author

Subash Sasidharan, Ketan Reddy

Share this article:

Related Articles

How ASEAN Can Improve Its Response to the Economic Crisis Generated by the COVID-19 Pandemic:  Inputs drawn from a comparative analysis of the ASEAN and EU responses

How ASEAN Can Improve Its Response to the Economic Crisis Generated by the COVID-19 Pandemic: Inputs drawn from a comparative analysis of the ASEAN and EU responses

31 May 2021

ASEAN, COVID-19, Macroeconomy, Regional Integration

This paper conducts a comparative review of the evolution of the economic crisis generated by the coronavirus disease (COVID-19) pandemic and the responses enacted by …

Financial Market Responses to Government COVID-19 Pandemic Interventions: Empirical Evidence from South-East and East Asia

Financial Market Responses to Government COVID-19 Pandemic Interventions: Empirical Evidence from South-East and East Asia

29 April 2021

ASEAN, COVID-19, East Asia, Government Intervention, Macroeconomy, Stock Market

This study investigates the impact of various government interventions on the spread of COVID-19 as well as stock markets in South-East and East Asia. It …

CHOOSE FILTER
Loading Loading