Trade-induced Structural Change

M. Parameswaran

in Growth, Development, and Diversity

Published in print June 2012 | ISBN: 9780198077992
Published online September 2012 | e-ISBN: 9780199081608 | DOI:
Trade-induced Structural Change

More Like This

Show all results sharing this subject:

  • Economic Development and Growth


Show Summary Details


This chapter analyses the effect of international trade on the structure of the Indian manufacturing industry and its implications for technological progress and employment. The theoretical literature on this issue shows that trade-induced structural change is contingent on factors specific to the economy and industries, rendering the theoretical predictions to depend on the assumed domestic conditions. The chapter examines whether trade expanded or contracted the share of sectors with potential for technological progress and employment. The results show that trade has had a contractionary effect on the shares of growth generating sectors and an expansionary effect on labour-intensive sectors. Technology-intensive sectors were able to increase their shares in total manufacturing output due to expansion in domestic demand which was more than offset by the contractionary effect of international trade.

Keywords: labour-intensive sector; trade; liberalization; manufacturing; technology; India; employment; industry

Chapter.  7292 words. 

Subjects: Economic Development and Growth

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.