Globalization, Structural Change and Innovation in Emerging Economies: The Impact on Employment and Skills

37 Pages Posted: 8 Oct 2018

See all articles by Marco Vivarelli

Marco Vivarelli

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

Abstract

This paper aims to provide a critical overview of the drivers that the relevant theoretical and empirical literature suggests being crucial in dealing with the challenges an emerging country may encounter in its attempts to further catch-up a higher income status, with a particular focus devoted to the implications for the domestic labor market.In the first part of the paper, attention will be focused on structural change, capability building and technological progress, trying to map - using different taxonomies put forward by the innovation literature - the concrete ways through which an emerging country can engage a successful catching-up, having in mind that developing countries are deeply involved into globalized markets where domestic innovation has to be complemented by the role played by international technology transfer. In the second part of the paper, the focus will be moved to the possible consequences of this road to catching-up in terms of employment and skills. In particular, the prescriptions by the conventional trade theory will be contrasted with a view taking into account technology transfer, labor-saving technological progress and skill-enhancing trade.

Keywords: catching-up, structural change, globalization, capabilities, technological transfer

JEL Classification: O14, O33

Suggested Citation

Vivarelli, Marco, Globalization, Structural Change and Innovation in Emerging Economies: The Impact on Employment and Skills. IZA Discussion Paper No. 11849. Available at SSRN: https://ssrn.com/abstract=3261708

Marco Vivarelli (Contact Author)

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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