Affiliation:
1. University of Cambridge
Abstract
Abstract
We develop a framework to investigate the relationship between robotics and bilateral trade flows at the country level between 2000 and 2014. We find that the adoption of industrial robots improves value-added bilateral trade. However, robot adoption is also negatively associated with the growth rate of value-added bilateral trade, suggesting diminishing returns to the use of robots. This may be attributable to a lack of business model innovation compatible with robotization, a lack of relevant skills among the labor force and an uneven distribution of the trade benefit among robot-using countries. By establishing an empirical link between the use of an emerging technology, robotics, and its impact on value-added bilateral trade, we draw a number of implications for policymakers to help improve their decisions with regards to the wider context of automation in global value chains.JEL classification: F40, F62, O33, O47
Publisher
Research Square Platform LLC
Reference86 articles.
1. Acemoglu, D., & Autor, D. (2011). ‘Skills, tasks and technologies: Implications for employment and earnings’, in Handbook of Labor Economics, vol. 4, pp. 1043–1171, Elsevier
2. Acemoglu, D., & Restrepo, P. (2017). ‘Robots and jobs: Evidence from the US’, NBER Working Paper No, 23285
3. ‘The race between man and machine: Implications of technology for growth, factor shares, and employment’;Acemoglu D;American Economic Review,2018
4. Organizing the global value chain;Antràs P;Econometrica,2013
5. ‘Vision-aided robotic welding: an approach and a flexible implementation’;Agapakis JE;The International Journal of Robotics Research,1990