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

27 Pages Posted: 21 Dec 2013

See all articles by Getinet A. Haile

Getinet A. Haile

Policy Studies Institute (PSI); IZA Institute of Labor Economics; University of Mannheim

Ilina Srour

Catholic University of the Sacred Heart of Milan

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano; IZA Institute of Labor Economics

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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".

Keywords: technological change, trade, FDI, globalization, skills, employment, Ethiopia

JEL Classification: O33, F16, L60, O55, C33

Suggested Citation

Haile, Getinet Astatike and Srour, Ilina and Vivarelli, Marco, The Impact of Globalization and Technology Transfer on Manufacturing Employment and Skills in Ethiopia. IZA Discussion Paper No. 7820. Available at SSRN: https://ssrn.com/abstract=2370786

Getinet Astatike Haile (Contact Author)

Policy Studies Institute (PSI) ( email )

50 Hanson Street
London NW1 3SR
United Kingdom
+44 0 20 7911 7504 (Phone)

HOME PAGE: http://www.psi.org.uk/people/person.asp?person_id=319

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

University of Mannheim

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

Ilina Srour

Catholic University of the Sacred Heart of Milan ( email )

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano ( email )

Largo Gemelli 1
Milano, 20123
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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