Do trade and technology foster employment growth? Evidence from Indian industries

Chandan Sharma,Rupika Khanna

Published 2023 in Managerial and Decision Economics

ABSTRACT

Several developing economies have been generating fast growth, but formal employment generation remains a concern, causing a significant workforce to continue working in the informal sector. In this context, this study investigates the employment effects of international trade and in‐house R&D in the Indian case. Our attempt is important because India is not only the largest country in terms of population but also the largest working population in the world. We coalesce industry‐level data from two different sources for the period 1991–2018 and employ a powerful system GMM estimator in the analysis. Our findings are interesting and vital. We show that although the role of trade is overall positive, export and import have contrasting roles individually in generating employment. Most generally, exporting is a generator of employment, while importing causes a loss in it. Our analysis implies that the interplay of trade, and individually that of exports and imports, with in‐house R&D depends on many factors and may be more intricate than previously assumed.

PUBLICATION RECORD

  • Publication year

    2023

  • Venue

    Managerial and Decision Economics

  • Publication date

    2023-11-20

  • Fields of study

    Not labeled

  • Identifiers
  • External record

    Open on Semantic Scholar

  • Source metadata

    Semantic Scholar

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REFERENCES

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