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Impact of Trade on Employment Generation in Manufacturing in India

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  • Bishwanath Goldar

    (IEG)

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    Abstract

    Analysing the impact of trade on manufacturing employment in India, it is found that exports had a favourable effect on industrial employment, but the positive effect of export increase was offset by the negative effect of increases in imports. The net effect was marginal. The failure of trade to raise industrial employment is traced primarily to the changing product composition of trade and the changing direction of trade. Petroleum products have emerged as a major item of Indias exports whereas the traditional labour-intensive products have lost their share. The analysis reveals an adverse effect of changing factor prices on manufacturing employment. One interesting finding of the study is that after a long period of jobless growth, the corporate sector organized manufacturing has achieved in the last four years (2004-05 through 2007-08) a high rate of growth in employment, about 7 per cent per annum on average.

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    File URL: http://saber.eaber.org/node/22921
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    Bibliographic Info

    Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22921.

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    Date of creation: Jan 2009
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    Handle: RePEc:eab:tradew:22921

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    Related research

    Keywords: employment generation; trade; Manufacturing Sector; India;

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    1. Shishir Saxena, 2007. "Technology And Spillovers: Evidence From Indian Manufacturing Micro-Data," Development Research Unit Working Paper Series 27-07, Monash University, Department of Economics.
    2. Subash Sasidharan, 2006. "Foreign Direct Investment and Technology Spillovers:Evidence from the Indian Manufacturing Sector," Working Papers id:448, eSocialSciences.
    3. J. Paul Dunne & Lawrence Edwards, 2006. "Trade Technology and Employment: A case Study of South Africa," Working Papers 0602, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    4. Peter R. Fallon & Robert E. B. Lucas, 1989. "Job Security Regulations and the Dynamic Demand for Industrial Labor in India and Zimbabwe," Boston University - Institute for Economic Development 2, Boston University, Institute for Economic Development.
    5. Sean Dougherty, 2008. "Labour Regulation and Employment Dynamics at the State Level in India," OECD Economics Department Working Papers 624, OECD Publishing.
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