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Artificial Intelligence, Globalization, and Strategies for Economic Development

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  • Korinek, Anton
  • Stiglitz, Joseph

Abstract

Progress in artificial intelligence and related forms of automation technologies threatens to reverse the gains that developing countries and emerging markets have experienced from integrating into the world economy over the past half century, aggravating poverty and inequality. The new technologies have the tendency to be labor-saving, resource-saving, and to give rise to winner-takes-all dynamics that advantage developed countries. We analyze the economic forces behind these developments and describe economic policies that would mitigate the adverse effects on developing and emerging economies while leveraging the potential gains from technological advances. We also describe reforms to our global system of economic governance that would share the benefits of AI more widely with developing countries.

Suggested Citation

  • Korinek, Anton & Stiglitz, Joseph, 2021. "Artificial Intelligence, Globalization, and Strategies for Economic Development," CEPR Discussion Papers 15772, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15772
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    Cited by:

    1. Manuchehr Irandoust, 2024. "Employment and technology: Creative creation or creative destruction? An asymmetric analysis," Australian Economic Papers, Wiley Blackwell, vol. 63(2), pages 201-219, June.
    2. Leone, Fabrizio, 2021. "Foreign Ownership and Robot Adoption," CEPREMAP Working Papers (Docweb) 2111, CEPREMAP.
    3. Weller, Jürgen, 2022. "Tendencias mundiales, pandemia de COVID-19 y desafíos de la inclusión laboral en América Latina y el Caribe," Documentos de Proyectos 48610, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Abeliansky, Ana Lucia & Prettner, Klaus & Stöllinger, Roman, 2023. "Infection Risk at Work, Automatability, and Employment," Department of Economics Working Paper Series 352, WU Vienna University of Economics and Business.
    5. Katya Klinova & Anton Korinek, 2021. "AI and Shared Prosperity," Papers 2105.08475, arXiv.org.
    6. Ilan Noy & Shakked Noy, 2022. "The Short-Termism of 'Hard' Economics," CESifo Working Paper Series 10160, CESifo.
    7. Zixi Wu & Wen Zhou & Aisi Yu, 2023. "Analysis of a Legal Regulation Approach and Strategy of a Sharing Economy Based on Technological Change and Sustainable Development," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    8. Wang, Linhui & Cao, Zhanglu & Dong, Zhiqing, 2023. "Are artificial intelligence dividends evenly distributed between profits and wages? Evidence from the private enterprise survey data in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 342-356.
    9. Fabrizio Leone, 2023. "Multinationals, robots and the labor share," CEP Discussion Papers dp1900, Centre for Economic Performance, LSE.
    10. Debesh Mishra & Kamalakanta Muduli & Rakesh Raut & Balkrishna Eknath Narkhede & Himanshu Shee & Sujoy Kumar Jana, 2023. "Challenges Facing Artificial Intelligence Adoption during COVID-19 Pandemic: An Investigation into the Agriculture and Agri-Food Supply Chain in India," Sustainability, MDPI, vol. 15(8), pages 1-25, April.
    11. Lin, Boqiang & Xu, Chongchong, 2024. "Enhancing energy-environmental performance through industrial intelligence: Insights from Chinese prefectural-level cities," Applied Energy, Elsevier, vol. 365(C).
    12. Caleb Peppiatt, 2024. "The Future of Work: Inequality, Artificial Intelligence, and What Can Be Done About It. A Literature Review," Papers 2408.13300, arXiv.org.
    13. Alonso, Cristian & Berg, Andrew & Kothari, Siddharth & Papageorgiou, Chris & Rehman, Sidra, 2022. "Will the AI revolution cause a great divergence?," Journal of Monetary Economics, Elsevier, vol. 127(C), pages 18-37.
    14. Shreya Roy & Sugata Marjit & Bibek Ray Chaudhuri, 2022. "Role of Artificial Intelligence in Intra-Sectoral Wage Inequality in an Open Economy: A Finite Change Approach," CESifo Working Paper Series 9862, CESifo.
    15. Qingyang Wu, 2023. "Sustainable growth through industrial robot diffusion: Quasi‐experimental evidence from a Bartik shift‐share design," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(4), pages 1107-1133, October.
    16. Saurabh Mishra & Robert Koopman & Giuditta De-Prato & Anand Rao & Israel Osorio-Rodarte & Julie Kim & Nikola Spatafora & Keith Strier & Andrea Zaccaria, 2021. "AI Specialization for Pathways of Economic Diversification," Papers 2103.11042, arXiv.org.
    17. Ramirez Valdebenito Carlos & Gherghina Elena Madalina, 2022. "The Pandemic Impact On The Dynamic Of Employment In Developing Countries In The Context Of Vulnerability And Inequality. The Case Of Bulgaria And Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 5-14, February.

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    More about this item

    Keywords

    Artificial intelligence; Labor-saving progress; Inequality; Terms-of-trade losses;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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