Technological Capability, Employment Growth and Industrial Development: A Quantitative Anatomy of Indian Scenario
AbstractThe recent spurt of economic growth in India has been described as ‘jobless growth’. In this paper an attempt has been made to examine the question of when industrial development provides required dynamism for generating desired employment opportunities for labour force and when it does not. An industrial technological capability based approach has been adopted to analyse the Indian Industrial development experience during the period 1980 to 2005, which is a quarter century time period. The main finding that emerged from the empirical evidence is that the medium-high-tech industries have shown dynamism in terms of generating employment growth. The labour market regulation view put forward by various scholars supporting the liberalisation policies could not stand the scrutiny of clear demarcation among job creating and job destroying industries under the same circumstances. The relationship between industrial technological capabilities and employment growth turns out to be ambiguous. This implies that weak technological capabilities adversely affect employment growth and heavy dependence on imported technological know-how from the developed countries is labour displacing. It is thus suggested that developing countries should invest both in institutions and industrial firms to develop technological development that suits to resource endowment, specificities of local conditions and suitable to the stage of industrial development. There is a dire need to explore alternative paths of industrial and technological capability development to sustain economic transformation process for achieving prosperity and reducing the time for catch-up development.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 19059.
Date of creation: 07 Dec 2009
Date of revision:
Industrial development; jobless growth; technological capabilities; employment elasticities;
Find related papers by JEL classification:
- O25 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Morawetz, David, 1974. "Employment Implications of Industrialisation in Developing Countries: A Survey," Economic Journal, Royal Economic Society, vol. 84(335), pages 491-542, September.
- 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.
- Fallon, Peter R. & Lucas, Robert E. B., 1993. "Job security regulations and the dynamic demand for industrial labor in India and Zimbabwe," Journal of Development Economics, Elsevier, vol. 40(2), pages 241-275, April.
- Sen, Kunal, 2008. "International Trade and Manufacturing Employment Outcomes in India: A Comparative Study," Working Paper Series RP2008/87, World Institute for Development Economic Research (UNU-WIDER).
- Singh, Lakhwinder, 2004. "Technological Progress, Structural Change and Productivity Growth in Manufacturing Sector of South Korea," MPRA Paper 99, University Library of Munich, Germany.
- Vinoj Abraham, 2009.
"Employment Growth in Rural India: Distress Driven?,"
- Vinoj Abraham, 2008. "Employment growth in rural India: Distress driven?," Centre for Development Studies, Trivendrum Working Papers 404, Centre for Development Studies, Trivendrum, India.
- Szirmai, Adam, 2009. "Industrialisation as an engine of growth in developing countries," UNU-MERIT Working Paper Series 010, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.