IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/19010.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/19010/1/MPRA_paper_19010.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Kucera, 2001. "Foreign Trade of Manufactures and Men and Women's Employment and Earnings in Germany and Japan," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(2), pages 129-149.
    2. Eli Bekman & John Bound & Stephen Machin, 1998. "Implications of Skill-Biased Technological Change: International Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1245-1279.
    3. 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.
    4. 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.
    5. Berman, Eli & Machin, Stephen, 2000. "Skill-Based Technology Transfer around the World," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 16(3), pages 12-22, Autumn.
    6. 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.
    7. Agarwal, J P, 1976. "Factor Proportions in Foreign and Domestic Firms in Indian Manufacturing," Economic Journal, Royal Economic Society, vol. 86(343), pages 589-594, September.
    8. Daron Acemoglu, 2002. "Directed Technical Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(4), pages 781-809.
    9. Revenga, Ana, 1995. "Employment and wage effects of trade liberalization : the case of Mexican manufacturing," Policy Research Working Paper Series 1524, The World Bank.
    10. Claudia Goldin & Lawrence F. Katz, 1998. "The Origins of Technology-Skill Complementarity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(3), pages 693-732.
    11. 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 and Oxford Review of Economic Policy Limited, vol. 16(3), pages 90-103, Autumn.
    12. 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.
    13. Robertson, Raymond, 2004. "Relative prices and wage inequality: evidence from Mexico," Journal of International Economics, Elsevier, vol. 64(2), pages 387-409, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Najeeb,Fatima & Morales,Matias & Lopez-Acevedo,Gladys C., 2020. "Analyzing Female Employment Trends in South Asia," Policy Research Working Paper Series 9157, The World Bank.
    2. Isis Gaddis & Janneke Pieters, 2017. "The Gendered Labor Market Impacts of Trade Liberalization: Evidence from Brazil," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 457-490.
    3. Amin,Mohammad & Islam,Asif Mohammed, 2021. "Exports and Women Workers in Formal Firms," Policy Research Working Paper Series 9527, The World Bank.
    4. 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.
    5. Martin SAWADOGO & Gountiéni Damien LANKOANDE & Alain SIRI, 2023. "Effet du commerce intracommunautaire sur l’emploi féminin dans l’espace UEMOA," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 58, pages 5-20.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marouani, Mohamed A. & Nilsson, Björn, 2016. "The labor market effects of skill-biased technological change in Malaysia," Economic Modelling, Elsevier, vol. 57(C), pages 55-75.
    2. repec:dau:papers:123456789/14733 is not listed on IDEAS
    3. Lutz Hendricks, 2010. "Cross-country variation in educational attainment: structural change or within-industry skill upgrading?," Journal of Economic Growth, Springer, vol. 15(3), pages 205-233, September.
    4. David Kunst, 2019. "Deskilling among Manufacturing Production Workers," Tinbergen Institute Discussion Papers 19-050/VI, Tinbergen Institute, revised 30 Dec 2020.
    5. Pi, Jiancai & Zhang, Pengqing, 2018. "Skill-biased technological change and wage inequality in developing countries," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 347-362.
    6. Antonio Avalos & Andreas Savvides, 2006. "The Manufacturing Wage Inequality in Latin America and East Asia: Openness, Technology Transfer, and Labor Supply," Review of Development Economics, Wiley Blackwell, vol. 10(4), pages 553-576, November.
    7. Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
    8. Kurokawa, Yoshinori, 2011. "Is a skill intensity reversal a mere theoretical curiosum? Evidence from the US and Mexico," Economics Letters, Elsevier, vol. 112(2), pages 151-154, August.
    9. Jorge Saba Arbache, 2001. "Trade Liberalisation and Labor Markets in Developing Countries: Theory and Evidence," Studies in Economics 0112, School of Economics, University of Kent.
    10. Gallego, Francisco A., 2012. "Skill Premium in Chile: Studying Skill Upgrading in the South," World Development, Elsevier, vol. 40(3), pages 594-609.
    11. Atolia, Manoj & Kurokawa, Yoshinori, 2016. "The impact of trade margins on the skill premium: Evidence from Mexico," Journal of Policy Modeling, Elsevier, vol. 38(5), pages 895-915.
    12. Afonso, Oscar, 2008. "The impact of government intervention on wage inequality without scale effects," Economic Modelling, Elsevier, vol. 25(2), pages 351-362, March.
    13. Yoshinori Kurokawa, 2014. "A Survey Of Trade And Wage Inequality: Anomalies, Resolutions And New Trends," Journal of Economic Surveys, Wiley Blackwell, vol. 28(1), pages 169-193, February.
    14. Jauhari, Azmafazilah Binti & khalifah, noor, 2018. "Trade Linkages and Skill Demand: Empirical Evidence for the Malaysian Electrical and Electronics Industries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(1), pages 89-103.
    15. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    16. Eli Berman & Rohini Somanathan & Hong W. Tan, 2010. "Is Skill-Biased Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990s," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 299-321, National Bureau of Economic Research, Inc.
    17. Esquivel, Gerardo & Rodriguez-Lopez, Jose Antonio, 2003. "Technology, trade, and wage inequality in Mexico before and after NAFTA," Journal of Development Economics, Elsevier, vol. 72(2), pages 543-565, December.
    18. Mariacristina Piva & Marco Vivarelli, 2002. "The Skill Bias: Comparative evidence and an econometric test," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(3), pages 347-357.
    19. Grant Gannaway & Craig Palsson & Joseph Price & David Sims, 2014. "Technological Change, Relative Worker Productivity, and Firm-Level Substitution," Journal of Sports Economics, , vol. 15(5), pages 478-496, October.
    20. Ugur, Mehmet, 2019. "Innovation, technology adoption and employment: Evidence synthesis," Greenwich Papers in Political Economy 28307, University of Greenwich, Greenwich Political Economy Research Centre.
    21. Carsten Ochsen, 2006. "Zukunft der Arbeit und Arbeit der Zukunft in Deutschland," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 173-193, May.

    More about this item

    Keywords

    Employment Patterns; Trade; Foreign Investment; Technology;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:19010. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.