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What Explains the Job Creating Potential of Industrialisation in the Developing World?

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  • Kunal Sen

Abstract

This paper examines why job creation in the manufacturing sector has differed widely across developing countries, using a modified Lewis model that captures the scale, composition and labour intensity effects of industrialisation on job creation. We show that while the scale effect has been mostly positive, labour intensity and composition effects have been mostly negative. Trade integration has a positive impact on manufacturing employment via the scale and composition effects, but a negative impact via the labour intensity effect. Human capital has a positive effect via the labour intensity effect. Labour regulations have no impact through any of the effects.

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  • Kunal Sen, 2019. "What Explains the Job Creating Potential of Industrialisation in the Developing World?," Journal of Development Studies, Taylor & Francis Journals, vol. 55(7), pages 1565-1583, July.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:7:p:1565-1583
    DOI: 10.1080/00220388.2017.1404033
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    Cited by:

    1. Sri Juli Asdiyanti Samuda, 2023. "How Global Value Chains Affect Economic Output And Unemployment: An Empirical Evidence From Asean Countries," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(3), pages 513-538, September.
    2. Owusu, Solomon, 2021. "Powering structural transformation and productivity gains in Africa: The role of global value chains and resource endowments," MERIT Working Papers 2021-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    4. Richard Grabowski & Sharmistha Self, 2022. "Role of agricultural productivity growth in economic development: the neglected impact on institutional quality in Africa," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 681-700, September.
    5. Francis Lwesya, 2022. "Integration into regional or global value chains and economic upgrading prospects: an analysis of the East African Community (EAC) bloc," Future Business Journal, Springer, vol. 8(1), pages 1-14, December.
    6. Kunal Sen, 2019. "Structural Transformation around the World: Patterns and Drivers," Asian Development Review, MIT Press, vol. 36(2), pages 1-31, September.
    7. Dieudonné Mignamissi & Bernard Nguekeng, 2022. "Trade openness-industrialization nexus revisited in Africa," Economic Change and Restructuring, Springer, vol. 55(4), pages 2547-2575, November.

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