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Productivity gains from global value chains participation : Evidence from INDIAN manufacturing firms

By: Goldar, Biswanath and Goldar, Anindita.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 61(18), May 2. 2026: p.41-47. In: Economic & Political WeeklySummary: Using data on Indian manufacturing firms for 1999–2019, this paper examines the impact of participation in global value chains on total factor productivity. GVC participation—captured through exports, imports of intermediate inputs, and, in some cases, outward foreign direct investment—is identified using cluster analysis. The analysis employs a propensity score matching difference-in-differences approach, along with an advanced estimation method. The findings indicate that GVC participation has a statistically significant and positive effect on firm productivity. Even limited participation yields gains, while deeper integration into GVCs leads to further improvements in TFP.-Reproduced https://www.epw.in/journal/2026/18/special-articles/productivity-gains-global-value-chains.html
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Articles Articles Indian Institute of Public Administration
61(18), May 2. 2026: p.41-47 Available AR138872

Using data on Indian manufacturing firms for 1999–2019, this paper examines the impact of participation in global value chains on total factor productivity. GVC participation—captured through exports, imports of intermediate inputs, and, in some cases, outward foreign direct investment—is identified using cluster analysis. The analysis employs a propensity score matching difference-in-differences approach, along with an advanced estimation method. The findings indicate that GVC participation has a statistically significant and positive effect on firm productivity. Even limited participation yields gains, while deeper integration into GVCs leads to further improvements in TFP.-Reproduced

https://www.epw.in/journal/2026/18/special-articles/productivity-gains-global-value-chains.html

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