Globalization′s effect on Technology Development

Even economic theory admits the enormous role technology plays in encouraging
economic growth and development in the modern world. On the other hand, technological
advancement and its direct and indirect impact on the dynamics of labour markets continue to
be a subject of debate over the long-term consequences of progress (Conte and Vivarelli 37).
In industrialized nations, which are the leaders in technical innovation, a substantial amount
of study has been done on the influence of technological advancement on employment levels.
In addition, developing countries, which are sometimes seen as being behind the times in
terms of technology and innovation, have contributed a significant amount to research and
development. The major focus of research has been to examine the influence of technological
transfers on employment and the distribution of skills (Kefela, 91). Alternatively, the impact
of technology on labour in the least developed countries (LDCs) that have liberalized their
trade and opened their economies to direct technical imports or embedded technological
transfers has gotten less attention.

Surname 2

The least developed countries (LDCs) have had relatively little technical
advancement. Much worldwide technology and innovation indices, such as the Technological
Achievement Index and the Innovation Capability Index, among others, place the great
majority of them at or near the bottom of their respective categories (Meschi, Taymaz &
Vivarelli, 659). On the other hand, many of these countries have been adopting trade
liberalization policies over the last two decades. They are now confronted with the immense
job of increasing their economies' knowledge and technology intensity to stay competitive in
both national and international markets. Researchers Lachenmaier and Rottman (2011) found
that, on average, the technological integration of LDCs has increased, even though there are
significant disparities across countries. The Least Developed Countries (LDCs) need
sufficient human capital to absorb and integrate increasing access to technology and proper
economic policies. Moreover, they provide funding to organizations that increase the amount
and variety of current LDCs may import technology.

Globalization and technology transfer in a low-income country (LDC) focus on this
study, which aims to examine the influence on manufacturing employment and the
prevalence of skill-biased technological development (Haile, Srour & Vivarelli, 2017). In
1991, it initiated a national structural adjustment program and moved away from an import
substitution strategy favouring an open trade system, which was previously the case. In this
regard, it offers an appropriate context for investigating the effects of globalization on
employment and testing the concept of probable spread of the skill bias among LDCs in
developing countries.

The hypothesis of the study

Specifically, the empirical tests proposed in this study will look at how technology
and globalization transfer might affect employment qualitatively and quantitatively in third-

Surname 3
world countries. It will be accomplished via firm-level microdata, which will be analyzed
using a dynamic labour demand equation that has been expanded to include technology,
trade, and foreign direct investment.

Literature Review

Globalization has long been a growing phenomenon, expanding across decades and
centuries without indicating slowing down or stopping. Many problems and controversies
have developed due to the fast changes happening throughout the globe due to rapid
globalization (Conte and Vivarelli 39). Many experts are worried about the uneven
distribution of income and resources. They believe that the gap between those living in
poverty and those living in luxury would only widen due to globalization's consequences.
Other experts claim that globalization facilitates the diffusion of new ideas and technology
worldwide, particularly poor people who urgently need it. To analyze the effects of
globalization on technology and innovation in the contemporary world, this literature review
will look at the globalization of technology and innovation (Perraton 67). In addition, the
purpose of this examination will be to demonstrate why many emerging nations have had
little growth while still having limited access to critical technologies. In addition, this
literature analysis will explain which variables have contributed to the general lack of
development in Third World nations due to the global financial crisis.

History of Glo