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

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  • Pradhan, Jaya Prakash

Abstract

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.

Suggested Citation

  • Pradhan, Jaya Prakash, 2005. "How Do Trade, Foreign Investment, and Technology Affect Employment Patterns in Organized Indian Manufacturing?," MPRA Paper 19010, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19010
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    File URL: https://mpra.ub.uni-muenchen.de/19010/1/MPRA_paper_19010.pdf
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    References listed on IDEAS

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    1. Eli Bekman & John Bound & Stephen Machin, 1998. "Implications of Skill-Biased Technological Change: International Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1245-1279.
    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. 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.
    4. 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.
    5. 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.
    6. Daron Acemoglu, 2002. "Directed Technical Change," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 781-809.
    7. Revenga, Ana, 1995. "Employment and wage effects of trade liberalization : the case of Mexican manufacturing," Policy Research Working Paper Series 1524, The World Bank.
    8. Claudia Goldin & Lawrence F. Katz, 1998. "The Origins of Technology-Skill Complementarity," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 693-732.
    9. 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.
    10. 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.
    11. Robertson, Raymond, 2004. "Relative prices and wage inequality: evidence from Mexico," Journal of International Economics, Elsevier, vol. 64(2), pages 387-409, December.
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    Cited by:

    1. Jaanika Merikull, 2008. "The impact of innovation on employment: firm- and industry-level evidence from Estonia," Bank of Estonia Working Papers 2008-01, Bank of Estonia, revised 30 Oct 2008.
    2. Gaddis, Isis & Pieters, Janneke, 2012. "Trade Liberalization and Female Labor Force Participation: Evidence from Brazil," IZA Discussion Papers 6809, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Employment Patterns; Trade; Foreign Investment; Technology;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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