Trade Promotion Campaigns and Their Impact on Indian Labor: Discussion and Evidence
Published: 2023
Author(s) Name: Anshul Aggarwal and Chandan Sharma |
Author(s) Affiliation: Indian Institute of Management Lucknow, India
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Abstract
This study investigates the impact
of international trade and the
‘Make in India (MII)’ campaign on
firms’ performance and labor outcomes.
For this purpose, the study
deploys prudent econometric techniques
such as panel estimation and
difference-in-difference estimator
on Indian plant-level data. International
trade is found to be enhancing
firms’ performance and leading
to employment generation but having
a diminishing impact on wages.
MII campaign is found to be positive
but marginally contributing to
improving employment, wages and
firms’ revenues. The study observes
international trade as a trade-off
between ‘employment generating
industrial growth’ and falling
wages. MII compensates for the
loss in wages due to trade, indicating
the potential labor-centric nature
of the campaign.
Keywords: N.A.
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