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How Do Trade, Foreign Investment, and Technology Affect Employment Patterns in Organized Indian Manufacturing?

  • Pradhan, Jaya Prakash

The present study investigates into the impact of trade, foreign investment, and technology on three different employment patterns in India’s organized manufacturing sector. These employment patterns cover three disadvantage categories of workers viz., women vis-à-vis men workers, contract vis-à-vis regular workers and unskilled vis-à-vis skilled workers. A conceptual and empirical framework has been developed linking these employment patterns to trade, foreign investment, and technology, and tested for a sample of Indian industries. The research suggests that trade has been employment promoting for women and unskilled workers while it has remain neutral between contract and regular workers. The impact of foreign investment has been observed to be negative for contract and unskilled workers. The overall impact of technology encompassing in-house R&D, foreign technology imports, and capital-intensity has been mostly negative for women and unskilled workers but positive for contract workers.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19010.

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Date of creation: Dec 2005
Date of revision:
Publication status: Published in Indian Journal of Labour Economics 2.49(2006): pp. 249-272
Handle: RePEc:pra:mprapa:19010
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  1. E. Berman & J. Bound & S. Machin, 1997. "Implications of skill-biased technological change: international evidence," LSE Research Online Documents on Economics 20314, London School of Economics and Political Science, LSE Library.
  2. Pradhan, Jaya Prakash & Abraham, Vinoj & Sahoo, Manoj Kumar, 2004. "Foreign Direct Investment and Labour: The Case of Indian Manufacturing," MPRA Paper 19023, University Library of Munich, Germany.
  3. Revenga, Ana, 1995. "Employment and wage effects of trade liberalization : the case of Mexican manufacturing," Policy Research Working Paper Series 1524, The World Bank.
  4. Robertson, Raymond, 2004. "Relative prices and wage inequality: evidence from Mexico," Journal of International Economics, Elsevier, vol. 64(2), pages 387-409, December.
  5. Berman, Eli & Machin, Stephen, 2000. "Skill-Based Technology Transfer around the World," Oxford Review of Economic Policy, Oxford University Press, vol. 16(3), pages 12-22, Autumn.
  6. Okada, Aya, 2004. "Skills Development and Interfirm Learning Linkages under Globalization: Lessons from the Indian Automobile Industry," World Development, Elsevier, vol. 32(7), pages 1265-1288, July.
  7. Daron Acemoglu, 2002. "Directed Technical Change," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 781-809.
  8. Goldin, Claudia D. & Katz, Lawrence F., 1998. "The Origins of Technology-Skill Complementarity," Scholarly Articles 27867130, Harvard University Department of Economics.
  9. Chinkook Lee & Gerald Schluter, 1999. "Effect of Trade on the Demand for Skilled and Unskilled Workers," Economic Systems Research, Taylor & Francis Journals, vol. 11(1), pages 49-66.
  10. Driffield, Nigel & Taylor, Karl, 2000. "FDI and the Labour Market: A Review of the Evidence and Policy Implications," Oxford Review of Economic Policy, Oxford University Press, vol. 16(3), pages 90-103, Autumn.
  11. Jeffrey D. Sachs & Howard J. Shatz, 1994. "Trade and Jobs in Manufacturing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 1-84.
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