Urban Amenities, Productive Performance and Global Value Chain Activities of Indian Firms

ABSTRACT In this study, we explore the impact of urban amenities and the global value chain (GVC) participation on the performance of Indian firms using firm‐level panel data. The study matches firm‐level information with district level urban amenities based on the firm location. Using a panel data framework, our findings indicate that urban amenities significantly enhance both GVC participation and firm productivity, particularly through education and financial amenities. We also observe a positive impact of GVC participation on the productivity of firms. In terms of channels, we observe that educational amenities increase the productive performance of GVC firms. Our findings also indicate that the presence of financial amenities tends to increase the productive performance of GVC firms. Further, these effects are particularly pronounced for small firms and firms in high‐technology intensive industries, offering valuable insights for policy makers.