Automation, global value chains and functional specialization

Lionel Fontagné, Ariell Reshef (), Gianluca Santoni and Giulio Vannelli
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Ariell Reshef: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Giulio Vannelli: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: We study how technology adoption and changes in global value chain (GVC) integration jointly affect labor shares and business function specialization in a sample of 14 manufacturing industries in 14 European countries in 1999–2011. Increases in upstream, forward GVC integration directly reduce labor shares, mostly through reductions in fabrication, but also via other business functions. We do not find any direct effects of robot adoption; robotization affects labor only indirectly, by increasing upstream, forward GVC integration. In this sense robotization is "upstream-biased". Rapid robotization in China shaped robotization in Europe and, therefore, relative demand for labor there.

Keywords: labor share; functional specialization; global value chains; upstreamness; technological change; automation; robots (search for similar items in EconPapers)
Date: 2024-05
New Economics Papers: this item is included in nep-int and nep-tid
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04346960v1
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Published in Review of International Economics, 2024, 32 (2), pp.662-691. ⟨10.1111/roie.12711⟩

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Related works:
Journal Article: Automation, global value chains and functional specialization (2024)
Working Paper: Automation, global value chains and functional specialization (2024)
Working Paper: Automation, global value chains and functional specialization (2024)
Working Paper: Automation, Global Value Chains and Functional Specialization (2023)
Working Paper: Automation, Global Value Chains and Functional Specialization (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-04346960

DOI: 10.1111/roie.12711

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