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Technological Advancement, Import Penetration, and Labour Markets: Evidence from Thai Manufacturing

Author

Listed:
  • Juthathip Jongwanich
  • Archanun Kohpaiboon

    (Faculty of Economics, Thammasat University)

  • Ayako Obashi

    (School of International Politics, Economics and Communication, Aoyama Gakuin University)

Abstract

This paper examines the impacts of advanced technology on a possible change in workers’ skills, wages, and employment due to such technological advancement. Three proxies of advanced technologies are used in the study: (i) information and communications technology, (ii) intensity of robot use, and (iii) value of e-commerce. Our study compares the effects of technological advancements on labour market outcomes with import penetration, delineating into raw materials, capital goods, and final products. Our results show that in Thailand, the impact of advanced technology in pushing workers out of the job market is limited. Instead, it tends to affect reallocation of workers between skilled and unskilled positions. The results vary amongst proxies of technology and sectors. It seems that workers in comparatively capital-intensive industries, including automotive, plastics and chemicals, and electronics and machinery, are the most affected by advanced technology. Dampened wage/income is found only in some proxies of technology and sectors. Our results show less concern of negative impacts induced by imports, particularly imports of capital goods and raw materials, on employment status and income than technological advancement.

Suggested Citation

  • Juthathip Jongwanich & Archanun Kohpaiboon & Ayako Obashi, 2020. "Technological Advancement, Import Penetration, and Labour Markets: Evidence from Thai Manufacturing," Working Papers DP-2020-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2020-09
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    More about this item

    Keywords

    Technological advancement; Import Penetration; Labour Markets;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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