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Robots, tasks, and trade

Author

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  • Artuc, Erhan
  • Bastos, Paulo
  • Rijkers, Bob

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.

Suggested Citation

  • Artuc, Erhan & Bastos, Paulo & Rijkers, Bob, 2023. "Robots, tasks, and trade," Journal of International Economics, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:inecon:v:145:y:2023:i:c:s0022199623001149
    DOI: 10.1016/j.jinteco.2023.103828
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    Citations

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    Cited by:

    1. Andreas Baur & Lisandra Flach & Isabella Gourevich & Florian Unger, 2023. "North-South Trade: The Impact of Robotization," CESifo Working Paper Series 10865, CESifo.

    More about this item

    Keywords

    Robots; Tasks; Jobs; Wages; Trade; Inputs; Global value chains; Gains from trade;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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