2018/29 | LEM Working Paper Series | ||||||||||||||||
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Globalization, Structural Change and Innovation in Emerging Economies: The Impact on Employment and Skills |
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Marco Vivarelli |
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Keywords | |||||||||||||||||
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catching-up, structural change, globalization, capabilities, technological transfer.
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JEL Classifications | |||||||||||||||||
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O14, O33
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Abstract | |||||||||||||||||
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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.
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