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In their recent paper Seric A. and Winkler D. (28 April 2020, VOXEU: COVID-19 could spur automation and reverse globalisation – to some extent) argue that COVID-19 could spur automation and reverse globalisation. Using the specific sector and the H-O models critically discuss their view. Specifically:
• Use the specific sector and the H-O models to analyse who will benefit from automation: o How will the earning of labour and capital will be affected in the short and long run? Before answering read the article “Robots replace routine tasks performed by workers” by Elisabetta Gentile, Sébastien Miroudot, Gaaitzen De Vries, Konstantin M. Wacker, 08 October 2020, VOXEU.
• Briefly discuss how automation will affect movement of capital between countries. What will be the implications for the developing economies? o Use the specific factor and the H-O model to justify your arguments o Before answering read the article “Globalisation and the rise of the robots”, Dalia Marin, 15 November 2014, VOXEU. Additional Suggested Readings Good sources of rigorous but not overtly technical articles about topics we have been covering can be found at: http://www.voxeu.org/ http://www.nber.org/digest/ https://www.econlib.org/ https://www.project-syndicate.org/