Impact of Technological Advancement on Unemployment in ASEAN Countries

Date

6-2023

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Luisa G. Valera

Abstract

Technological unemployment is a widely studied phenomenon, especially in industrialized countries where its effects can fully be observed. The impact of Industry 4.0 on the rapid technological advancement of countries on a global scale enables technological unemployment to be observed in non-industrialized countries and regions such as the ASEAN. This study explored the relationship between technological advancement and unemployment in ASEAN countries in the context of Industry 4.0.

The study analyzed the behavior of technological advancement and unemployment in Singapore, Malaysia, Thailand, Indonesia, Vietnam, and Philippines throughout the years 1996-2019. While the unemployment rate of the countries behaved erratically and dissimilarly, clear distinctions can be made from the behavior of technological advancement in the region. Specifically, Singapore, Malaysia, Thailand, and Indonesia lead the region in terms of technological advancement with Vietnam and Philippines catching up. Econometric analyses, through First difference OLS, were also conducted to empirically study the impact of technological advancement on unemployment.

The results indicate that technological advancement generally leads to employment and job creation in the region. However, further analysis revealed that for Singapore specifically, technological advancement leads to unemployment and job destruction. Therefore, this study recommends promoting technological advancement in Malaysia, Thailand, Indonesia, Vietnam, and Philippines, to create jobs and increase their income. On the contrary, a reevaluation of the level of technological advancement is recommended for Singapore to avoid technological unemployment in the country.

Language

English

LC Subject

Unemployment -- Asia

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 E2 D9

Notes

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Document Type

Thesis

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