Robots, tasks, and trade

Erhan Artuc, Paulo Bastos and Bob Rijkers

Journal of International Economics, 2023, vol. 145, issue C

Abstract: We examine the effects of robotization on North–South trade patterns, wages and welfare. The empirical analysis uses ordinary least squares and instrumental-variable regressions exploiting variation in exposure to robots across countries and sectors. Both reveal that greater robot intensity in own production leads to: (i) a rise in imports sourced from less developed countries in the same industry; and (ii) an even stronger increase in exports to those countries. To explain these findings we develop a stylized Ricardian model featuring two-stage production and trade in intermediate and final goods in which robots can take over some tasks previously performed by humans in a subset of industries. An increase in robot adoption in the North impacts trade in final and intermediate goods with the South, as well as wages and welfare.

Keywords: Robots; Tasks; Jobs; Wages; Trade; Inputs; Global value chains; Gains from trade (search for similar items in EconPapers)
JEL-codes: F1 J23 J24 O3 O4 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Robots, Tasks, and Trade (2020)
Working Paper: Robots, Tasks, and Trade (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:145:y:2023:i:c:s0022199623001149

DOI: 10.1016/j.jinteco.2023.103828

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