Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90012
Authors: 
Haile, Getinet Astatike
Srour, Ilina
Vivarelli, Marco
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7820
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.
Subjects: 
technological change
trade
FDI
globalization
skills
employment
Ethiopia
JEL: 
O33
F16
L60
O55
C33
Document Type: 
Working Paper

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