How will Robotization Affect Relative Positions of the IDB Member Countries?

Countries that will be able to adopt robotization quickly will be able to increase efficiency and productivity giving them comparative edge over other countries. In this study, I focus on how robotization will affect the relative position of Islamic Development Bank (IDB) Member Countries (MCs). i.e. relative resiliency of the IDB MCs to the robotization tsunami. To do this, I propose an index calculated by employing two different data sets in order to rank resiliency to robotization. The first data set is COMTRADE; MCs’ exports data from 1995 to 2016. The second data set consists of the human capital intensity at detailed sectoral levels, and is called the Revealed Factor Intensity Indices database which are prepared by United Nations Conference on Trade Development (UNCTAD), and provide a unique number that indicates the factor intensity of a traded goods group according to SITC classification. I calculate an index based on these two data sets for each MC showing human capital intensity of the MC’s exports sectors for a year. Then, ranking the index value for each MC reveals the relative resilience of MCs: the higher the figure, the more resilient the MC to robotization. The results of this study help to understand how susceptible MCs’ economies to robotization. In addition, they will provide a ground to policy makers to develop relevant policies in order to decrease the vulnerability of their countries