Academic Output – UK India Trade Project

Innovative efforts and export market survival: Evidence from an emerging economy

admin — Sat, 29 Oct 2022 05:51:21 +0000

Abstract:

We examine the role of innovation on the export market survival of Indian manufacturing firms. To achieve this objective, we source information on 1424 firms from the CMIE-Prowess database over 2001–2018. We find that firms investing in R&D experience a lower probability of exiting from export markets. In addition, multiple sub- sample analyses indicate the significance of R&D for small and medium firms export market survival. The findings are robust to endogeneity concerns.

Authors:

Ketan Reddy (Department of Economics and Public Policy, Indian Institute of Management Raipur, Raipur, India).

Subash Sasidharan (Department of Humanities and Social Sciences, Indian Institute of Technology Madras, Chennai, India).

Read the full article here: Innovative efforts and export market survival: Evidence from an emerging economy

Does servicification of manufacturing increase GVC activities of firms? Case of India

admin — Wed, 29 Jun 2022 11:05:00 +0000

Abstract:

Does greater use of services’ inputs in manufacturing increase the global value chain (GVC) activities of the firms? In this study, we analyse the effects of servicifica- tion on the GVC activities of manufacturing firms in India. Using panel data of 4608 Indian manufacturing firms from 2001 to 2018, we examine the effects of servicification of manufacturing firms on their decision to participate in GVCs. The study examines the overall service inputs in manufacturing activities and its impact on GVC activities of firms. The results indicate that servicification of manu- facturing tends to have a positive impact on GVC activities of firms. We also observe positive impact on Indian small and medium enterprises (SMEs) to participate in the GVC through the servicification of manufacturing. Further, the results also indicate the differential impact of servicifica- tion between high- and low-technology industries.

Authors:

Ketan Reddy (Postdoctoral Research Associate, King’s India Institute, King’s College London).

Subash Sasidharan (Department of Humanities and Social Sciences, Indian Institute of Technology, Madras, Chennai, Tamil Nadu, India)

Shandre Thangavelu (Institute of International Trade, The University of Adelaide, Adelaide, South Australia, Australia and Jeffrey Cheah Institute for Southeast Asia, Sunway University, Selangor, Malaysia).

Read the full article here: Does servicification of manufacturing increase the GVC activities of firms Case of India

Does digitalization spur global value chain participation? Firm-level evidence from emerging markets

admin — Mon, 04 Apr 2022 11:05:51 +0000

Abstract:

Does digitalization by firms spur participation in Global Value Chains (GVCs)? Rapid strides in informa- tion and communication technology (ICT) through cost-effective and reliable telecommunications have facilitated multinational firms to outsource complex production activities across borders over the years. While the rise of GVCs to prominence has coincided with the ICT revolution, there is very little sys- tematic empirical evidence at the firm-level documenting the nexus between digitalization of firms and their participation in GVCs. By using rich firm-level data for a sample of 24,839 firms across 52 countries spanning the period 2006–2018, we empirically test the importance of digitalization in deepening GVC participation. After correcting for potential biases arising from self-selection and reverse causality, our empirical analysis shows that digitalization by firms positively influences GVC deepening. Our results are quite robust to various measures of GVCs and digitalization. Further, we also document how digitalization boosts GVC integration of firms that are financially constrained.

Authors:

Sasidaran Gopalan (Assistant Professor in the Department of Innovation in Government and Society, College of Business and Economics at United Arab Emirates University (UAEU), Abu Dhabi, United Arab Emirates).

Ketan Reddy (Post-Doctoral Research Associate at King’s India Institute, King’s College London, UK).

Subash Sasidharan (Associate Professor of Economics at the Department of Humanities and Social Sciences, Indian Institute of Technology Madras (IITM), India).

Read the full article here: Does digitization spur global value chain participation? Firm-level evidence from emerging markets

Servicification and global value chain survival: Firm-level evidence from India

admin — Sat, 29 Jan 2022 11:05:36 +0000

Abstract:

In this article, we study the role of servicification in sustaining global value chain participation. To empiri- cally analyse the role of firm servicification on GVC survival, we draw information from a sample of 1,227 Indian manufacturing firms over 2001–2018. We use a complementary log–log model and find that higher ser- vicification is associated with a lower hazard rate. Moreover, we account for the reverse causality in the model using a two-stage residual inclusion method and correct for self-selection using the propensity score matching estimator. Our finding of servicification aiding GVC survival remains robust to the endogeneity concerns. Further, our analysis also underscores the importance of servicification for sustaining GVC partic- ipation for firms with short-trading spells.

Authors:

Subash Sasidharan (Department of Humanities and Social Sciences, Indian Institute of Technology Madras, Chennai, India).

Ketan Reddy (Postdoctoral Research Associate, King’s India Institute, King’s College London).

Read the full article here: Australian Economic Papers – 2022 – Reddy – Servicification and global value chain survival Firm‐level evidence from India