Kakarlapudi, Kiran Kumar (2010): The Impact of Trade Liberalisation on Employment: Evidence from India’s Manufacturing Sector.
Download (389Kb) | Preview
The Opening up of the economy brought in phenomenal changes in various dimensions of the economy. The growth performance of the Indian economy, though not spectacular, has been decent by the standards of developing countries after initiation of economic reforms. There has been a great debate in academia that the growth was not accompanied by an increase in employment growth. Stagnant growth in employment with impressive economic performance during last two decades is termed as “jobless growth”. Since the manufacturing employment has been subject to sweeping changes in the post reform period, this paper attempts to examine the possible impact of trade liberalisation on the growth of organised manufacturing employment at two digit levels by dividing industries into export oriented and import competing industries. Both the overall and manufacturing employment trends shows that there is a reduction in employment growth in the post- liberalisation period compare to the pre-liberalisation period. It is further found that deceleration of employment growth in the import competing industries is higher than export competing industries and that; trade liberalisation did not create any growth in employment through scale effect.
|Item Type:||MPRA Paper|
|Original Title:||The Impact of Trade Liberalisation on Employment: Evidence from India’s Manufacturing Sector|
|Keywords:||Trade liberalisation; Manufacturing sector; Employment|
|Subjects:||F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions|
|Depositing User:||Kiran Kumar Kakarlapudi|
|Date Deposited:||11. Jan 2012 17:49|
|Last Modified:||11. Feb 2013 23:35|
Ahluwalia, M. S. (2002), “Economic Reforms in India since 1991: Has Gradualism Worked?”, Journal of Economic Perspectives, 16(3): pp. 67-88.
Agarwal, R. N. and B. Goldar (1995), “Economic Reforms and Employment in India: Projections for the Year 2001-02”, Indian Journal of Labour Economics, 38(4): pp. 577-95.
Balasubramaniam, V. N. and M. Vidya (2001), “India’s Economic Reforms and Manufacturing Sector”, Working Paper No. 2001/010, Lancaster University Management School.
Banga, R. (2005), “Impact of Liberalization on Wages and Employment in Indian Manufacturing Industries”, Working Paper No. 153, Indian Council for Research in International Economic Relations.
Banga, R. and S. Bathla (2008), “Impact of Trade on Labour Markets in the Unorganised Sector in India: An Empirical Approach”, paper prepared for UNCTAD, Centre for Development Studies, Trivandrum.
Bhalotra, S. R. (1998), “The Puzzle of Jobless Growth in Indian Manufacturing”, Oxford Bulletin of Economics and Statistics, 60(1): pp. 5-32.
Deshpande, L. (1992), “Economic Liberalization and Labour in India”, Indian Journal of Labour Economics, 35(4): pp.25-40
Fallon, P. R. and R. E. B. Lucas (1993), “Job Security Regulations and the Dynamic Demand for Industrial Labour in India and Zimbabwe”, Journal of Development Economics, 40(2), pp. 241-75.
Ghose, A. K. (2000), “Trade liberalization and Manufacturing Employment”, Employment Paper No. 2000/3, International Labour Office, Geneva
Ghose, A. K. (1999), “Current Issues in Employment Policies in India”, Economic and Political Weekly, 34(46): pp. 4-10.
Ghose, A. K. (1994), “Employment in Organised Manufacturing in India”, Indian Journal of Labour Economics, 37(2): pp.141-62.
Goldar, B. (2002),”Trade Liberalization and Manufacturing Employment: The Case of India”, Working Paper No. 34, International Labour Organization, Geneva.
Goldar, B. and S. C. Aggarwal (2004), “Trade Liberalization and Price-Cost Margin in Indian Industries”, Working Paper No. 130, Indian Council for Research on International Economic Relations, New Delhi.
Goldar, B. (2000), “Employment Growth in Organised Manufacturing in India”, Economic and Political Weekly, 35(14): pp. 1191-95
Grossman, G. M and E, Helpman (1991), “Innovation and Growth in the Global Economy”, MIT Press, Cambridge MA.
Hasan, R and D. Mitra (2003), “The Impact of Trade on Labor: Issues, Perspectives and Experiences from Developing Asia”, Elsevier Science, Amsterdam.
Helpman, E. and P. R. Krugman (1985), “Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy”, MIT Press, Cambridge MA.
Kannan, K. P. (1994), “Levelling Up or Levelling Down? Labour Institutions and Economic Development in India”, Economic and Political Weekly, 29(30): pp. 1938-45.
Krugman, P. R. (2000), “Crises: the Price of Globalization?’ Proceedings (Aug), Federal Reserve Bank of Kansas City, pp. 75-106.
Kundu, A. (1997), “Trends and Structure of Employment in the 1990s: Implications for Urban Growth”, Economic and Political Weekly, 32(24), pp. pp. 1399-1405.
Levinsohn, J. (1999), “Employment Responses to International Liberalization in Chile”, Journal of International Economies”, 47(2), pp.321-344
Mesquita, M. and S. Najberg (2000), “Trade Liberalization in Brazil: Creating or Exporting Jobs?” Journal of Development Studies, 30(3): pp. 78-100.
Milner, C. and P. Wright (1998), “Modelling Labour Market Adjustment to Trade Liberalization in an Industrializing Economy”, Economic Journal, 108(447): pp. 509-28.
Majumder, R (2006), “Wages and Employment in the Liberalised Regime: A Study of Indian Manufacturing Sector” MPRA Paper No. 4851
Nagaraj, R. (1994), “Employment and Wages in Manufacturing Industries: Trends, Hypotheses and Evidence”, Economic and Political Weekly, 29(4): pp. 177-86.
Nagaraj, R. (2000), “Organised Manufacturing Employment”, Economic and Political Weekly, 35(38): pp. 3445-48.
Nagaraj, R. (2002), “Trade and Labour Market Linkages in India: Evidence and Issues”. Economic Series Working Paper No. 50, East West Center, Hawaii.
Papola, T. S. (1994), “Structural Adjustment, Labour Market Flexibility and Employment”, Indian Journal of Labour Economics, 37(1): pp.10-35.
Pianta, M and M. Vivarelli (2000), “The Employment Impact of Innovation: Evidence and Policy”, Routledge, London.
Posner, M. (1961), “International Trade and Technological Change”, Oxford Economic Papers, 13(3): pp. 323-41.
Ravenga, A. (1994), “Employment and Wage Effects of Trade Liberalization: The case of Mexican Manufacturing”, World Bank, Washington, DC.
Rattso, J. and R. Torvik (1998). “Zimbabwean Trade Liberalization: Ex-post Evaluation”, Cambridge Journal of Economics, 22(3), pp. 325-46.
Ramaswamy, K.V, R. Hasan, D. Mitra (2003): “Trade Reforms, Labour Regulations, and Labour Demand Elasticities: Empirical Evidence from India, Working Paper No. 53, East West Working Paper Series.
Rani, U. and J. Unni (2004), “Unorganised and Organized Manufacturing in India: Potential for Employment Generating Growth”, Economic and Political Weekly, 34(41): pp. 4568-80.
Sen, K. and R. Rajesh (2009), “Did International Trade Destroy or Create Jobs in Indian Manufacturing?”, paper for BNUIF Conference, Centre for Development Studies, Trivandrum.
Sundaram, K. and S. D. Tendulkar (2006), “Trends in Labour and Employment in India, 1983-2003: Some Fresh Results”, paper presented at the Conference on India: Meeting the Employment Challenge, organised by Institute for Human Development and World Bank, July 27-29, New Delhi.
Tendulkar, S. D. (2003), “Organised Labour Market in India: Pre and Post Reform”, paper prepared for the Conference on Anti Poverty and Social Policy on January 2-4 at Alwar, India.
Rodrik, D. (1997), “Has Globalization Gone Too Far?”, Institute for International Economics, Washington DC.
Unni, J. (2006), “Employment Trends and Earnings in the Informal Sector”, paper presented at the Conference on India: Meeting the Employment Challenge, organised by Institute for Human Development and World Bank, July 27-29, New Delhi.
World Bank (1989): “India: Poverty, Employment and Social Services: A World Bank Country Study” (Washington DC: World Bank)
Young, A. (1991), “Learning by Doing and Dynamic Effect of International Trade", Quarterly Journal of Economics, 106(2), pp. 369-405.