Firm automation and global value-chain participation: cross-country analysis

Ketan Reddy, Subash Sasidharan and Radeef Chundakkadan

Applied Economics, 2025, vol. 57, issue 3, 317-337

Abstract: Using detailed firm-level survey data obtained from the World Bank, the present study examines the role of automation technology in shaping the participation of firms in global value chains (GVCs). For the empirical analysis, a sample of firms from 20 economies over 2016–2019 is obtained. To examine the automation-GVC nexus, the study employs a multilevel probit model, which accounts for the hierarchical structure of the data used. The results stemming from the empirical analysis highlight that automation adoption by firm is positively associated with a firm’s decision to participate in GVCs. Moreover, the results emanating from the multilevel probit analysis are robust to different measures of firm participation in GVC, multiple sub-sample analysis, and endogeneity correction.

Date: 2025
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DOI: 10.1080/00036846.2024.2303619

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