Beyond the modern productivity paradox: The effect of robotics technology on firm-level total factor productivity in China

Yi Zhang, Ting Wang and Chun Liu

Journal of Asian Economics, 2024, vol. 90, issue C

Abstract: This study aims to provide firm-level evidence on the burgeoning debate about the productivity effect of robotics technology. Taking China as an example, we find that city-level robot exposure plays a significant role in augmenting total factor productivity for firms in industries with high degrees of task replaceability. The results of the mechanism analysis further reveal that firms with substantial exposure to robotics technology are incentivized to improve their innovation performance and cultivate human capital. Conversely, there is evidence that firms characterized by low task replaceability experience a reduction in productivity as a consequence of robot exposure, potentially attributable to the effect of inter-industry resource reallocation. These findings offer empirical support for theoretical arguments regarding the productivity enhancements stemming from the development of robotics technology, while also shedding light on strategies to elevate productivity through the adoption of new technologies.

Keywords: Industrial robots; Total factor productivity; Task replaceability; Resource reallocation; China (search for similar items in EconPapers)
JEL-codes: D24 O14 O33 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1049007823001124
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:90:y:2024:i:c:s1049007823001124

DOI: 10.1016/j.asieco.2023.101692

Access Statistics for this article

Journal of Asian Economics is currently edited by C. Wiemer

More articles in Journal of Asian Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().