Digitalization as Objective Factor of the Substitution of the Labor by the Capital

Vladimir Osipov, Yuan Lunqu, Liu Dun and Geng Yuan
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Yuan Lunqu: Beijing Jiaotong University
Liu Dun: Beijing Jiaotong University
Geng Yuan: Capital University of Economics and Business

Chapter Chapter 12 in Technology and Business Strategy, 2021, pp 165-176 from Springer

Abstract: Abstract Digitalization and robotization raise questions of providing society with a sufficient number of jobs, since the absence of the latter can lead to social upheaval. Two trends seemed to us the most important in the study of this issue: a sharp increase in the population of the planet, which is already approaching eight billion people and the fact that developed countries are less needing living labor and are abandoning it in favor of capital. The EU economy is one of the largest in the world, but the proportion is gradually decreasing under the influence of the Chinese economy; secondly, Germany and France occupy key positions in the Eurozone, the rest of the countries make an insignificant contribution to the Union’s GDP; thirdly, the assessment of the influence of macroeconomic factors on the Union GDP within the framework of the Cobb-Douglas function showed that the gross capital accumulation has the greatest impact, while the return on scale is characterized as constant. And finally, the labor factor plays an insignificant role in the formation of the EU GDP in comparison with the capital factor. Further studies of structural (technological) unemployment and labor market problems in the digital economy, digital uncertainty, business strategy, and technology can be based on this research.

Keywords: Integration; Business strategy; Digitalization; Robotics; Digital uncertainty; Structural and technological unemployment; Labor market; J11; O14; O43 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/978-3-030-63974-7_12

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