Ordinary exports or processing exports? The role of industrial robots on the choice of export modes

Qilin Mao and Buchao Shi

Journal of Asian Economics, 2025, vol. 100, issue C

Abstract: This study explores the effect of robot exposure on the choice of export modes. While industrial robots have been emphasized sufficiently for their important role in economic performance and labor markets, their influence on export modes has been little studied. Using a comprehensive dataset of Chinese firms from 2006 to 2013, our results demonstrate that an increase in robot exposure significantly leads to the transformation of export modes towards ordinary exports. This improvement is mainly driven by the alleviation of financing constraints, the enhancement of productivity, and the improvement of market power. Notably, the productivity effect of robots exists only when the firm possesses a high level of human capital. We also discover that the effect is more pronounced for digital firms, firms in industries with fiercer competition, and firms in provinces with stronger intellectual property protection. Furthermore, the robot exposure promotes firms’ export quality by facilitating a shift from processing exports to ordinary exports and from processing with assembly to processing with imported inputs. This article provides valuable insights into the driving forces behind the development of high-quality trade from the perspective of automation technology.

Keywords: Industrial robots; Export mode transformation; Ordinary exports; Processing exports (search for similar items in EconPapers)
JEL-codes: F14 O14 O33 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:100:y:2025:i:c:s1049007825001344

DOI: 10.1016/j.asieco.2025.102010

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