@techreport{oai:ir.ide.go.jp:00052091,
 author = {Sato, Hitoshi},
 month = {Mar},
 note = {application/pdf, IDP000815_001, Manufacturing has long been the center of industrialization strategies for poor developing
countries. This paper first investigates the effects of labor supply constraints on
industrialization, which may have been caused by the coronavirus disease 2019 (COVID-19).
Then, the study examines how manufacturing automation could affect industrialized developing
economies based on the premise that manufacturers may accelerate production automation in
response to the COVID-19 pandemic. The model predicts declines in developing economies’
manufacturing competitiveness and a heterogeneous pattern of recovery from the COVID-19
recession. In comparison, developing economies with large manufacturing bases would recover
relatively quickly, whereas those with weaker manufacturing bases would suffer from a
long-term decline and manufacturing contraction trends (undesirable deindustrialization).
Manufacturing automation can enhance economic welfare, causing a contraction in the
unproductive non-tradable good (service) sector. However, with low labor mobility, the welfare
effect is ambiguous, thereby widening the wage gap between skilled and unskilled labor.},
 title = {Industrialization of developing economies in the global economy with an infectious disease},
 year = {2021}
}