Impact of technological interdependencies on employment by BCFE method: evidence from GVC participation of developing countries

Abstract

Technology has a profound impact on the job market, creating both opportunities and challenges for workers, companies and economies. Its effect on employment has been discussed extensively for developed countries while it has not been widely examined in developing countries. This paper provides an examination of the interplay between technology and employment in developing countries through their participation in global value chain in a sample of 33 developing countries over the period 2010-2020. The Dynamic panel bootstrap-corrected fixed effects estimation showed positive and relevant impact of Backward GVC participation and ICT imports on employment, while the effect of forward participation was not significant.

Keywords

• bootstrap-corrected fixed effects
• employment
• GVC participation
• inter-country input-output table
• technology