Automated Deindustrialization: How Global Robotization Affects Emerging Economies—Evidence from Brazil

Highlights

• This study examines the effects of automation technology adoption by domestic and trade-partner industries on employment in 557 regions of Brazil.

• The empirical analysis is grounded on a Ricardian model of trade, and instrumental variables account for endogeneity in robot adoption. • Automation in trade-partner countries reduces the employment share in manufacturing, while increasing employment shares in the mining sector. • The same pattern is found for sectoral and regional exports, suggesting that shifts in the demand for export goods are causing employment changes. • Automation within Brazil increases the ratio of […]

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