{"title":"India in Global Services Value Chain: The Case of IT-BPM","authors":"S. S. Pattnayak, A. Chadha","doi":"10.1355/ae36-2d","DOIUrl":null,"url":null,"abstract":"Abstract:This paper examines the development of the services sector in India in terms of the global value chain (GVC) framework. In particular, it looks at the information technology and business process management (IT-BPM) services and finds that firm characteristics such as size, age and foreign ownership are important determinants of GVC participation for IT firms. Furthermore, the study demonstrates that investment in computer and IT systems promotes forward and backward linkages by the companies. Likewise, while royalty payments for foreign technology prove to be an important factor for backward participation, that is not the case for forward participation. It is also shown that R&D expenditure does not have a positive impact on GVC participation, which suggests that Indian IT firms are currently engaged in low-end activities of the value chain, carrying out mundane tasks like coding and body-shopping. In order to upgrade to greater value-added activities, investment in new technologies and products is crucial.","PeriodicalId":43712,"journal":{"name":"Journal of Southeast Asian Economies","volume":"36 1","pages":"204 - 223"},"PeriodicalIF":0.8000,"publicationDate":"2019-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"8","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Southeast Asian Economies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1355/ae36-2d","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 8
Abstract
Abstract:This paper examines the development of the services sector in India in terms of the global value chain (GVC) framework. In particular, it looks at the information technology and business process management (IT-BPM) services and finds that firm characteristics such as size, age and foreign ownership are important determinants of GVC participation for IT firms. Furthermore, the study demonstrates that investment in computer and IT systems promotes forward and backward linkages by the companies. Likewise, while royalty payments for foreign technology prove to be an important factor for backward participation, that is not the case for forward participation. It is also shown that R&D expenditure does not have a positive impact on GVC participation, which suggests that Indian IT firms are currently engaged in low-end activities of the value chain, carrying out mundane tasks like coding and body-shopping. In order to upgrade to greater value-added activities, investment in new technologies and products is crucial.
期刊介绍：
The Journal of Southeast Asian Economies (JSEAE) is a peer-reviewed multi-disciplinary journal focusing on economic issues in Southeast Asia. JSEAE features articles based on original research, research notes, policy notes, review articles and book reviews, and welcomes submissions of conceptual, theoretical and empirical articles preferably with substantive policy discussions. Original research articles and research notes can be country studies or cross-country comparative studies. For quantitative-oriented articles, authors should strive to ensure that their work is accessible to non-specialists. Submitted manuscripts undergo a rigorous peer-review process – two reviewers for original research articles and one reviewer for research notes and policy notes. The journal is published three times a year: April, August and December.
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