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Technological advancement, import penetration and labour markets: Evidence from Thailand

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  • Jongwanich, Juthathip
  • Kohpaiboon, Archanun
  • Obashi, Ayako

Abstract

This paper examines the impact of advanced technology and import penetration on changes in employment positions and income, as well as the possibility that workers become unemployed due to such technological progress. Two proxies of advanced technology are used, ICT and the intensity of robot usage. The analysis considers changes in employment status and income, together with workers’ industrial adjustments in investigating the impact of technological advancements and imports, which are delineated into raw materials, capital goods and final products. The 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 the reallocation of workers between skilled and unskilled positions. The results vary among workers’ industrial destinations and proxies of technology. Skill upgrading is likely to occur more when workers stay or move within manufacturing sectors, while ICT usage tends to generate more favourable outcomes than robot adoption. Workers in comparatively capital-intensive industries, including the automotive and plastics and rubber sectors, tend to receive greater benefits from technological growth. Our results highlight a diminished negative impact resulting from imports, particularly those of capital and final goods, in comparison to that of technological advancements. Technology adoption and imports are likely to lower workers’ income regardless of their industrial destinations and proxies of technology.

Suggested Citation

  • Jongwanich, Juthathip & Kohpaiboon, Archanun & Obashi, Ayako, 2022. "Technological advancement, import penetration and labour markets: Evidence from Thailand," World Development, Elsevier, vol. 151(C).
    • Handle: RePEc:eee:wdevel:v:151:y:2022:i:c:s0305750x21003612
    DOI: 10.1016/j.worlddev.2021.105746
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    Cited by:

    1. Stemmler, Henry, 2023. "Automated Deindustrialization: How Global Robotization Affects Emerging Economies—Evidence from Brazil," World Development, Elsevier, vol. 171(C).
    2. Jurkat, Anne & Klump, Rainer & Schneider, Florian, 2023. "Robots and Wages: A Meta-Analysis," EconStor Preprints 274156, ZBW - Leibniz Information Centre for Economics.
    3. Juthathip Jongwanich & Archanun Kohpaiboon, 2024. "Digital technology adoption and SMEs’ Financial Performance: Evidence from Thailand," Discussion Papers 81, Thammasat University, Faculty of Economics, revised Jan 2024.

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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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