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

Carlos García, Wildo D. González and Tiare Rivera

Labour Economics, 2024, vol. 87, issue C

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.

Keywords: Robots; Productivity; Technological change; Developing countries; Trade (search for similar items in EconPapers)
JEL-codes: E20 F60 J20 O11 O30 O40 O57 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:87:y:2024:i:c:s0927537124000083

DOI: 10.1016/j.labeco.2024.102512

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