Digital technologies and ‘value’ capture in global value chains: Empirical evidence from Indian manufacturing firms

Banga, Karishma

doi:10.35188/unu-wider/2019/677-7

Cited by 21 publications

(30 citation statements)

References 49 publications

(68 reference statements)

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“…Technologies such as digital platforms for e-commerce, digital payments, automated document processing, and IoT reduce coordination and matching costs, making logistics highly efficient. An analysis of more than 9,000 firms in India shows that digital competence helps firms upgrade to more sophisticated product lines that capture higher value-added in GVCs (Banga 2019).…”

Section: Rising Importance Of Information and Communication Technologymentioning

confidence: 99%

Regional Cooperation and Integration in Asia and the Pacific: Responding to the COVID-19 Pandemic and “Building Back Better”

2022

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Unprecedented challenges from the coronavirus disease (COVID-19) pandemic have emphasized the need for Asia and the Pacific countries to work together to build back resiliently and sustainably. This report reflects on lessons learned from efforts to tackle the pandemic through regional cooperation and integration. It provides insights on how region-wide solidarity can be enhanced with the support of multilateral development banks in areas such as trade and investment, connectivity infrastructure, people’s mobility, regional public goods, and policy cooperation. The report was jointly prepared by the Asian Development Bank, the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank, and the World Bank Group.

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Section: Rising Importance Of Information and Communication Technologymentioning

confidence: 99%

Regional Cooperation and Integration in Asia and the Pacific: Responding to the COVID-19 Pandemic and “Building Back Better”

2022

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“…Fourth IR technologies, such as artificial intelligence (AI), internet of things (IOT) and blockchain can enable SMEs to play a more active role in GVCs (Lanz et al, 2018). An empirical study by Banga (2019) shows a positive relationship between digital competence (in the form of digital capability and share of skilled labour) and firm-level upgradation of Indian firms participating in GVCs, which helps these firms capture higher value in GVCs.…”

Section: Literature Reviewmentioning

confidence: 99%

Indian SMEs in Global Value Chains: Status, Issues and Way Forward

Mukherjee

2022

Foreign Trade Review

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Small and medium enterprises (SMEs) account for bulk of the enterprises in most countries and play a crucial role in global value chains (GVCs). In India, micro, small and medium enterprises (MSMEs) constitute around 30% of the gross domestic product (GDP), accounts for 50% of exports and a major share in employment. Under the Aatmanirbhar Bharat Abhiyan, the Central government intends to enhance the share of MSMEs in exports to 60% in the next 5 years. The government also plans to increase the contribution of the MSMEs to 40% of the GDP. In this context, this article examines how effective the government policies have been in the past 10 years to help Indian MSMEs integrate in the GVCs. It first presents an overview of the MSMEs in India, focusing on their exports and global market integration. It then examines the schemes and policies of the Ministry of Micro, Small and Medium Enterprises, and provides an empirical estimation (2000–2001 to 2020–2021) of the impact of government schemes/programmes on MSMEs integration in the GVCs. Based on key informant interviews, it identified the core issues faced by the MSMEs and makes recommendation on how to address them, so that, the targets set by the government for enhancing the contribution of the sector to GDP and exports can be achieved. JEL Codes: F10, G28, O10, O20, O57

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“…

X_{ijt}

refers to a set of variables controlling for enterprise heterogeneity. Following studies by Clarke (2008), Wignaraja (2015), WTO (2018), Banga (2019) and Urata and Baek (2020), in Equation , we capture different aspects of SMEs' characteristics including size, years of operation, formality status, owner/manager's formal education level, trained professional labour and financial assets. As discussed in Section 2.2, these internal factors would have effects on the integration of SMEs into GVCs.…”

Section: Estimation Strategy and Datamentioning

confidence: 99%

“…Internal factors including firm size, age, technological level and ownership are among the determinants of the capacity of firms to adopt IT to join GVCs (Clarke, 2008;Lanz et al, 2018;Wignaraja, 2012Wignaraja, , 2015. External factors such as financial support and information provided by the government, training programmes, legal services, transparent and simplified administrative procedures combine to facilitate firms' IT adoption to integrate into GVCs (Hong et al, 2020;Kowalski et al, 2015;Wignaraja, 2012) and upgrade in GVCs (Banga, 2019;ITC, 2018). It is also agreed that firms of a smaller size are less likely to use IT as an effective tool to get connected to GVCs (OECD, 2019c;WTO, 2019).…”

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confidence: 99%

Information technology adoption and integration into global value chains: Evidence from small‐ and medium‐sized enterprises in Vietnam

Bui

Hoang

et al. 2021

J of Intl Development

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While it is well known that the adoption of information technology facilitates the integration of enterprises into global value chains (GVCs), it is unclear how this relationship changes in different business environments. This study reveals that while the adoption of information technology facilitates micro-, small-, or medium-sized enterprises which are located in an improved-quality business environment to participate in GVCs, it does not help the micro-sized enterprises located in a low-quality business environment to become integrated into GVCs. Therefore, information technology policies should be complemented by policies which improve the business environment to promote smaller enterprises to be integrated into GVCs.

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Digital technologies and ‘value’ capture in global value chains: Empirical evidence from Indian manufacturing firms

Abstract: This study has been prepared within the UNU-WIDER project on 'Varieties of structural transformation'.

Cited by 21 publications

References 49 publications

Regional Cooperation and Integration in Asia and the Pacific: Responding to the COVID-19 Pandemic and “Building Back Better”

Regional Cooperation and Integration in Asia and the Pacific: Responding to the COVID-19 Pandemic and “Building Back Better”

Indian SMEs in Global Value Chains: Status, Issues and Way Forward

Information technology adoption and integration into global value chains: Evidence from small‐ and medium‐sized enterprises in Vietnam

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