This Discussion Paper examines whether COVID-19 has changed the long-term prospects of latecomer industrialisation. The authors find that the pandemic has had both positive and negative impacts on the process of catching up with advanced economies. On the positive side, the pandemic has accelerated digitalisation and the adoption of new technologies, which can help latecomers to catch up. On the negative side, the pandemic has also led to a slowdown in global trade and investment, which can hinder progress. The authors conclude that the impact of COVID-19 on latecomer industrialisation will depend on the specific policies and responses of governments and other stakeholders.
