Revue des Economies financières bancaires et de management
Volume 15, Numéro 1, Pages 236-248
2026-04-30
The Political Economy Of Ai-driven Productivity: Impacts On Employment, Wages, And Inequality In Emerging Markets
Authors : Saifi Walid .
Abstract
Abstract: This study examines the impact of the rapid spread of Artificial Intelligence (AI) and automation on emerging markets, highlighting the paradox between enhanced productivity opportunities and the erosion of traditional labor-intensive advantages. It integrates insights from management science, development economics, and critical political economy, supported by recent empirical evidence, to analyze shifts in employment structures, wage polarization, and income inequality. The paper argues that without strong institutional frameworks, AI adoption may worsen “premature deindustrialization” and expand the digital divide. It emphasizes that the socioeconomic outcomes of AI are politically shaped rather than technologically determined, with institutional quality and labor regulation acting as key mediators. Moreover, the research identifies a “double exposure” risk for emerging economies — high automation vulnerability and weak institutional adaptability — potentially leading to a new form of “technological informality.”
Keywords
Artificial Intelligence ; Emerging Markets ; Labor Economics ; Income Inequality ; Premature Deindustrialization ; Political Economy ; Institutional Theory ; Skill-Biased Technological Change
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