Technology Choice, Employment, and Development

The purpose of this article is to gain deeper insights into the development process led by international technology transfer and its implications for employment generation by reviewing case studies. It is argued that conventional rice research has fallen in the region of diminishing returns and, hence, greater research resources should be allocated to nonrice research and research based on new scientific principles. It is also argued that while the improved seed technology is conducive to employment generation, its impact is likely to be rather limited, which means that the development of the nonfarm sector is indispensable to achieve growth with equity. In the case of low-income economies, the paper finds that the choice of labor-using industrial technology is critical for successful development. To achieve appropriate technology choice, it will be imperative to create and maintain competitive market environments.