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Robots at work in emerging developing countries: How bad could it be?
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Robots at work in emerging developing countries: How bad could it be?

Author

Listed:
  • García, Carlos J.
  • González, Wildo D.
  • Rivera, Tiare

Abstract

We address the impact that robots will have on emerging developing economies by using a nonlinear general equilibrium model consistent with the empirical evidence available so far. The impact in the first decades is negative at the aggregate level, which then reverses due to productivity gains. These economies accommodate the rise of robots not only with a fall in the interest rate, but also with a real depreciation in the medium term and a reduction in marginal costs. Despite these adjustments, the labor force loses out and the gap in terms of economic growth with the developed world increases dramatically. We show that the direct production of robots, and thus the existence of human capital to produce them, could trigger a virtuous circle with other sectors in these countries to achieve high growth rates driven by the export sector.

Suggested Citation

  • García, Carlos J. & González, Wildo D. & Rivera, Tiare, 2024. "Robots at work in emerging developing countries: How bad could it be?," Labour Economics, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:labeco:v:87:y:2024:i:c:s0927537124000083
    DOI: 10.1016/j.labeco.2024.102512
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    More about this item

    Keywords

    Robots; Productivity; Technological change; Developing countries; Trade;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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