No Simple Relationship between Technological Improvements and Employment Generation in a Large Developing Country like China: Thoughts Stimulated by Sjöholm and Lundin
Fredrik Sjöholm and Nannan Lundin (this issue) have found that China's science and technology (S&T) activities had no effect on employment growth. I disagree with their conclusion and attribute it to the neglect of important factors like the S&T upgrading by small firms, the spillover effects from S&T activities, differences across industries, and differences in the stage of economic development. I used macroeconomic and cross-regional data in China to estimate the effect of technology development on job creation and found that technology innovation did have a positive impact on employment in the eastern region of China. This suggests that a positive relationship between technological improvement and employment creation is reliably seen only after the economy has reached a middle-level of economic development. (c) 2010 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.
Volume (Year): 9 (2010)
Issue (Month): 2 (June)
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