Automation, Global Value Chains and Development: What do we know so far?

The changing nature of global trade, along with recent advances in robotics and artificial intelligence, have led to growing concerns over whether the path of manufacturing-led development will remain viable for countries that have yet to industrialise. It is often assumed that automation will reduce the incentive for further offshoring to developing countries or lead to a wave of ‘reshoring’. Yet, so far there is little empirical evidence supporting this assumption. This paper explores the recent changes in global value chains, the rise of automation and the evidence to date on the relationship between automation and global value chains.