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Impact of Trade Liberalisation on Employment in Indian Manufacturing: Evidence from the Organised Sector

Author

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  • Shashanka Bhide

    (Institute for Social and Economic Change, Bangalore-560 072.)

  • Kaliappa Kalirajan

    (Foundation for Advanced Studies in International Development, Tokyo)

Abstract

Manufacturing has been seen as a means of economic development in the country since independence. Moving people out of agriculture for better wages meant the need to develop a diversified and growing industrial sector. The economic reforms launched in the early 1990s were rooted in the need for removing various constraints on economic growth. These reforms provided new opportunities for investment by the private sector and greater import competition for the domestic producers. This paper is an attempt to assess the impact on employment in response to the reforms initiated in the 1990s. The paper examines the impact of the reforms on employment by decomposing employment into average size of the firm, labour intensity of output, and number of firms in the industry.

Suggested Citation

  • Shashanka Bhide & Kaliappa Kalirajan, 2004. "Impact of Trade Liberalisation on Employment in Indian Manufacturing: Evidence from the Organised Sector," Journal of Social and Economic Development, Institute for Social and Economic Change, Bangalore, vol. 6(1), pages 1-19, January-J.
    • Handle: RePEc:sch:journl:v:6:y:2004:i:1:p:1-19
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    File URL: http://www.isec.ac.in/JSED_v6_i1_1-19.pdf
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    Cited by:

    1. Mita Bhattacharya & Paresh Narayan & Stephan Popp & Badri Rath, 2011. "The productivity-wage and productivity-employment nexus: a panel data analysis of Indian manufacturing," Empirical Economics, Springer, vol. 40(2), pages 285-303, April.

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