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Technology Import and Industrial Employment: Evidence from Developing Countries

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  • Arup Mitra

Abstract

This paper based on panel data across countries examines the possible effect of the imported technology on labour absorption in the industrial sector, after controlling for real wage rate and GDP per capita. Findings tend to suggest a negative relationship between the two. Technical efficiency index derived on the basis of the stochastic frontier function framework is also negatively affected by the import of technology. Without enhancing the knowledge relating to the mechanisms of exploiting the new technology acquired from abroad, a mere increase in import of technology would mean rising unutilized capacity. And this could be due to the poor skill base of the available human capital. Investment in human capital in terms of skill formation, up-gradation, and training on the one hand and technological advancement to suit the internal labour market conditions are the two important policy conclusions for reviving the role of industry as the engine of pro-poor growth. Copyright 2009 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.

Suggested Citation

  • Arup Mitra, 2009. "Technology Import and Industrial Employment: Evidence from Developing Countries," LABOUR, CEIS, vol. 23(4), pages 697-718, December.
  • Handle: RePEc:bla:labour:v:23:y:2009:i:4:p:697-718
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9914.2009.00461.x
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    References listed on IDEAS

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    1. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
    2. Daron Acemoglu & Fabrizio Zilibotti, 2001. "Productivity Differences," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 563-606.
    3. Battese, George E., 1991. "Frontier Production Functions and Technical Efficiency: A Survey of Empirical Applications in Agricultural Economics," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145845, Australian Agricultural and Resource Economics Society.
    4. Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
    5. repec:ilo:ilowps:370119 is not listed on IDEAS
    6. Johanson, Richard K., 2004. "Implications of globalization and economic restructuring for skills development in sub-Saharan Africa," ILO Working Papers 993701193402676, International Labour Organization.
    7. Bauer, Paul W., 1990. "Recent developments in the econometric estimation of frontiers," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 39-56.
    8. Jörg MAYER, 2000. "Globalization, Technology Tranfer And Skill Accumulation In Low-Income Countries," UNCTAD Discussion Papers 150, United Nations Conference on Trade and Development.
    9. Pack, Howard & Todaro, Michael P, 1969. "Technological Transfer, Labour Absorption, and Economic Development," Oxford Economic Papers, Oxford University Press, vol. 21(3), pages 395-403, November.
    10. Hasan, Rana, 2002. "The impact of imported and domestic technologies on the productivity of firms: panel data evidence from Indian manufacturing firms," Journal of Development Economics, Elsevier, vol. 69(1), pages 23-49, October.
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    Cited by:

    1. repec:eee:wdevel:v:96:y:2017:i:c:p:1-18 is not listed on IDEAS
    2. Mitra, Arup., 2013. "Can industry be the key to pro-poor growth? : An exploratory analysis for India," ILO Working Papers 994843463402676, International Labour Organization.
    3. Ugur, Mehmet & Mitra, Arup, 2014. "Effects of innovation on employment in low-income countries: A mixed-method systematic review," MPRA Paper 58214, University Library of Munich, Germany, revised 27 Aug 2014.
    4. repec:ilo:ilowps:484346 is not listed on IDEAS

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