The Effect of Technological Changes on Employment: Regional I-O SDA Approach

Authors

Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran.

Abstract

In this study, the Regional Input-Output Structural Decomposition Analysis (I-O SDA) is used to investigate the effects of technological changes on employment in the Sistan and Baluchestan Province of Iran during 2006-2011. This paper develops the SDA method to decompose the technological change from two viewpoints of supply and demand for intermediate inputs in each sector. These changes from a demand perspective are decomposed into changes in the share of each sector in total intermediate inputs used by specific sectors (input substitution effect) and backward linkage. From a supply perspective, these change is decomposed to the share of each sector in total intermediate demand supplied by a specific sector (selling structure) and forward linkage. The results show that changes in forwarding linkages of sectors caused to decrease of 127351 jobs in total employment. The effect of changes in backward linkages is negative in all sectors of the economy and caused to decrease of 75581 jobs in the regional economy.

Keywords

References

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Iranian Economic Review
Volume 24, Issue 2
May 2020
Pages 415-429

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