North-South Trade: The Impact of Robotization

Andreas Baur, Lisandra Flach (), Isabella Gourevich and Florian Unger

No 10865, CESifo Working Paper Series from CESifo

Abstract: This paper investigates the effect of robotization in high-income countries on firm-level North-South trade along the value chain. Using a novel combination of data sources including firm-level export data, input-output linkages, and robot adoption, we show contrasting implications for Southern firms. Increased exposure to robot adoption in the destination country of exports reduces firm-level exports in case of robot adoption in the same industry. However, the opposite holds when accounting for input-output linkages and trade along the value chain. We outline a North-South trade model with endogenous robot adoption that accounts for the different channels shown in the data. Our findings highlight the importance of taking into account supply chain linkages and suggest net positive effects for Southern exporters.

Keywords: robotization; firm-level trade; value chain linkages; sourcing (search for similar items in EconPapers)
JEL-codes: D20 F14 L20 O33 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-int and nep-tid
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