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The Impact of Globalization and Technology Transfer on Manufacturing Employment and Skills in Ethiopia

Author

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  • Haile, Getinet Astatike

    (University of Nottingham)

  • Srour, Ilina

    (Università Cattolica del Sacro Cuore)

  • Vivarelli, Marco

    (Università Cattolica del Sacro Cuore)

Abstract

There is a dearth of research on the impact of technological change on employment in the context of least developed countries (LDCs) embarking on globalization, which enhances the prospect of direct technological imports or embodied technological transfer. Using a sample of 1,940 enterprises from Ethiopia over the period 1996-2004 and deploying System Generalized Method of Moments (GMM-SYS), this paper attempts to establish the nature of manufacturing employment in Ethiopia and the role played by trade and FDI in determining employment. The empirical results obtained lend support to globalization having a labour-augmenting effect, increasing total manufacturing employment. The two-equation dynamic framework implemented to analyse enterprise-level employment trends by skill level provides some evidence of skill-bias specific to enterprises with higher share of foreign ownership and those that that are located in the vicinity of the capital city. Exporters are not found to benefit from "learning by exporting".

Suggested Citation

  • Haile, Getinet Astatike & Srour, Ilina & Vivarelli, Marco, 2013. "The Impact of Globalization and Technology Transfer on Manufacturing Employment and Skills in Ethiopia," IZA Discussion Papers 7820, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7820
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    References listed on IDEAS

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    2. Jamil Salmi & Andrée Sursock & Anna Olefir, 2017. "Improving the Performance of Ethiopian Universities in Science and Technology," World Bank Publications - Reports 28489, The World Bank Group.

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    More about this item

    Keywords

    skills; globalization; FDI; trade; technological change; employment; Ethiopia;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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