The automation effect on deindustrialization: the case of Brazil
(2025) EKHS21 20251Department of Economic History
- Abstract
- This thesis investigates the relationship between automation and deindustrialisation in the
context of Brazil, a developing country experiencing significant structural economic changes.
While automation is often associated with productivity growth and economic advancement, its
implications for employment, particularly in emerging economies, remain contested. Drawing
on the Lewis 2.0 framework and Tregenna’s (2011) decomposition model, the study examines
whether the adoption of automation technologies in Brazil's manufacturing sector contributes
to a decline in industrial employment and a shift toward low-productivity service jobs. The
empirical analysis covers the period from 2000 to 2015 and employs two econometric models
to test... (More) - This thesis investigates the relationship between automation and deindustrialisation in the
context of Brazil, a developing country experiencing significant structural economic changes.
While automation is often associated with productivity growth and economic advancement, its
implications for employment, particularly in emerging economies, remain contested. Drawing
on the Lewis 2.0 framework and Tregenna’s (2011) decomposition model, the study examines
whether the adoption of automation technologies in Brazil's manufacturing sector contributes
to a decline in industrial employment and a shift toward low-productivity service jobs. The
empirical analysis covers the period from 2000 to 2015 and employs two econometric models
to test two hypotheses: first, that automation leads to a reduction in manufacturing employment,
and second, that it increases employment in the service sector. A decomposition analysis shows
that the primary driver of declining manufacturing employment is not productivity growth, but
rather a contraction in the sector’s overall size. Regression results further reveal that automation
is unexpectedly associated with higher manufacturing employment, contradicting conventional
assumptions. Meanwhile, no statistically significant relationship is found between automation
and service employment. The findings suggest that automation alone does not explain Brazil’s
deindustrialisation. This study contributes to the limited empirical literature on automation and
premature deindustrialisation in developing countries, offering insights into how technological
change interacts with employment patterns in middle-income economies during the era of
Industry 4.0 (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9203339
- author
- Petrosiute, Aiste LU
- supervisor
- organization
- course
- EKHS21 20251
- year
- 2025
- type
- H2 - Master's Degree (Two Years)
- subject
- language
- English
- id
- 9203339
- date added to LUP
- 2025-08-25 08:38:40
- date last changed
- 2025-08-25 08:38:40
@misc{9203339, abstract = {{This thesis investigates the relationship between automation and deindustrialisation in the context of Brazil, a developing country experiencing significant structural economic changes. While automation is often associated with productivity growth and economic advancement, its implications for employment, particularly in emerging economies, remain contested. Drawing on the Lewis 2.0 framework and Tregenna’s (2011) decomposition model, the study examines whether the adoption of automation technologies in Brazil's manufacturing sector contributes to a decline in industrial employment and a shift toward low-productivity service jobs. The empirical analysis covers the period from 2000 to 2015 and employs two econometric models to test two hypotheses: first, that automation leads to a reduction in manufacturing employment, and second, that it increases employment in the service sector. A decomposition analysis shows that the primary driver of declining manufacturing employment is not productivity growth, but rather a contraction in the sector’s overall size. Regression results further reveal that automation is unexpectedly associated with higher manufacturing employment, contradicting conventional assumptions. Meanwhile, no statistically significant relationship is found between automation and service employment. The findings suggest that automation alone does not explain Brazil’s deindustrialisation. This study contributes to the limited empirical literature on automation and premature deindustrialisation in developing countries, offering insights into how technological change interacts with employment patterns in middle-income economies during the era of Industry 4.0}}, author = {{Petrosiute, Aiste}}, language = {{eng}}, note = {{Student Paper}}, title = {{The automation effect on deindustrialization: the case of Brazil}}, year = {{2025}}, }