GTAP Resources: Resource Display
| GTAP Resource #7803 |
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"The Long-Run Impact of Artificial Intelligence on Global Trade and Economic Growth" Authors: Bekkers, Eddy, Lee Humphreys, Hryhorii Kalachyhin, Karolina Wilczynska and Danchen Zhao Abstract This paper studies the macroeconomic impacts of artificial intelligence (AI) using a quantitative trade model with multiple sectors, multiple factors of production, and intermediate linkages. The reallocation of tasks from labour to AI services will generate productivity gains in the model, and AI will reduce operational trade costs. We build four scenarios that differ in how far less-prepared economies catch up. The simulations yield three main findings. First, AI adoption is projected to substantially boost global trade flows and economic growth: in the most favourable scenario, the diffusion of AI raises global GDP by an additional 13.2% over the next 15 years compared to the baseline. Global trade volumes are projected to be 35% larger than without AI. Second, low- and middle-income economies can capture more of these gains if they improve their digital infrastructure and ensure adequate AI deployment across the economy. Third, AI is projected to change the within-country income distribution. While all factors gain in real terms, returns shift toward capital and the skill premium declines. The magnitude of these distributional effects depends on the long-run growth rate of AI and the degree of complementarity between production factors. |
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- GTAP Data Base and extensions - Economic growth - Technological change - Model extension/development - Global |
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Public Access  Paper (1.8 MB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 4/15/2026 11:27:11 AM
