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Impact of Trade on Employment Generation in Manufacturing in India

  • Bishwanath Goldar

    (IEG)

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    Analysing the impact of trade on manufacturing employment in India, it is found that exports had a favourable effect on industrial employment, but the positive effect of export increase was offset by the negative effect of increases in imports. The net effect was marginal. The failure of trade to raise industrial employment is traced primarily to the changing product composition of trade and the changing direction of trade. Petroleum products have emerged as a major item of Indias exports whereas the traditional labour-intensive products have lost their share. The analysis reveals an adverse effect of changing factor prices on manufacturing employment. One interesting finding of the study is that after a long period of jobless growth, the corporate sector organized manufacturing has achieved in the last four years (2004-05 through 2007-08) a high rate of growth in employment, about 7 per cent per annum on average.

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    File URL: http://www.eaber.org/node/22921
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    Paper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22921.

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    Date of creation: Jan 2009
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    Handle: RePEc:eab:tradew:22921
    Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
    Web page: http://www.eaber.org

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    1. Sasidharan, Subash, 2006. "Foreign Direct Investment and Technology Spillovers: Evidence from The Indian Manufacturing Sector," MERIT Working Papers 010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Shishir Saxena, 2007. "Technology And Spillovers: Evidence From Indian Manufacturing Micro-Data," Monash Economics Working Papers 27-07, Monash University, Department of Economics.
    3. Fallon, Peter R. & Lucas, Robert E. B., 1993. "Job security regulations and the dynamic demand for industrial labor in India and Zimbabwe," Journal of Development Economics, Elsevier, vol. 40(2), pages 241-275, April.
    4. Sean Dougherty, 2008. "Labour Regulation and Employment Dynamics at the State Level in India," OECD Economics Department Working Papers 624, OECD Publishing.
    5. J. Paul Dunne & Lawrence Edwards, 2006. "Trade Technology and Employment: A case Study of South Africa," Working Papers 0602, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
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