Abstract:

First Industrial Revolution, which is a product of steam engines invention in 18th century, along with the spontaneous increase of scientific studies has caused increases in technological developments. This condition, after passing different stages till reaching 2000’s, has paved the way for the Fourth Industrial Revolution. The main difference between the so-called Industry 4.0 and the other revolutions is the quick expansion of technological developments. Moreover, Fourth Industrial Revolution, which is also called Industry 4.0, causes serious paradigm changes in governments, businesses and even in all segments of the society. Production occurs with the interaction of different technologies and automation of the system in the production improves each day. This automation has been made possible through “cyber – physical systems”, “internet of things”, and “internet of services” terms, thus causing a continuous decline in the demand for human labor in the production process. Continuous decline in the demand for human labor along with wide-spreading automation, has emerged as a subject matter that needs to be evaluated in the framework of international political economy because eastern countries that attract foreign direct investments through their cheap labor will probably bring subtle problems in the global economy if these investments are withdrawn. Furthermore, countries that have effectively implemented industry 4.0 implementations are likely to gain significant competitive advantages in the global economy, and these advantages will be further enhanced by improved developments. Turkey, having less labor force as compared to the western countries and aiming to enter G10 countries, needs desperately to keep up with the Fourth Industrial Revolution era in order to reach this goal. Thus, this study through explaining the Industry 4.0 period evaluates its impact on global economy and Turkey.

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