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Impact of Trade on Employment Generation in Manufacturing in India

Author

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  • Bishwanath Goldar

    (IEG)

Abstract

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.

Suggested Citation

  • Bishwanath Goldar, 2009. "Impact of Trade on Employment Generation in Manufacturing in India," Trade Working Papers 22921, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:tradew:22921
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    File URL: http://www.eaber.org/node/22921
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    References listed on IDEAS

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    Cited by:

    1. Tandon, Anjali, 2020. "Linkages and changing factor use in Indian economy: Implications of emerging trade pattern," MPRA Paper 113633, University Library of Munich, Germany.
    2. Sonal Ann D’souza & Panchendra K. Naik, 2018. "Trade Liberalisation, Capital-Intensive Export and Informalisation: A Case Study of India’s Manufacturing Sector," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(2), pages 377-399, June.
    3. Tandon, Anjali, 2022. "Employment implications of India’s international trade – A macro view based on Input-Output analysis," MPRA Paper 112778, University Library of Munich, Germany.
    4. Irfan Ahmad Sofi & Pritee Sharma, 2015. "Labour Regulations, Contractualization and Industrial Performance," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(1), pages 122-144, March.
    5. Rubina Verma & Rahul Giri, 2017. "Informality in Indian Manufacturing," 2017 Meeting Papers 1566, Society for Economic Dynamics.
    6. Anjali Tandon, 2022. "Linkages and changing factor use in Indian economy: Implications of emerging trade pattern," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(2), pages 266-294, December.
    7. Rajesh Raj S.N. & Subash Sasidharan, 2015. "Impact of Foreign Trade on Employment and Wages in Indian Manufacturing," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(2), pages 209-232, September.
    8. Sanjeev Kumar & Falguni Pattanaik & Ajay K. Singh, 2021. "Modeling Trade–Employment Elasticity Nexus: Evidence from India," Emerging Economy Studies, International Management Institute, vol. 7(1), pages 62-75, May.

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    More about this item

    Keywords

    employment generation; trade; Manufacturing Sector; India;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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