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Ordinary exports or processing exports? The role of industrial robots on the choice of export modes

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  • Mao, Qilin
  • Shi, Buchao

Abstract

This study explores the effect of robot exposure on the choice of export modes. While industrial robots have been emphasized sufficiently for their important role in economic performance and labor markets, their influence on export modes has been little studied. Using a comprehensive dataset of Chinese firms from 2006 to 2013, our results demonstrate that an increase in robot exposure significantly leads to the transformation of export modes towards ordinary exports. This improvement is mainly driven by the alleviation of financing constraints, the enhancement of productivity, and the improvement of market power. Notably, the productivity effect of robots exists only when the firm possesses a high level of human capital. We also discover that the effect is more pronounced for digital firms, firms in industries with fiercer competition, and firms in provinces with stronger intellectual property protection. Furthermore, the robot exposure promotes firms’ export quality by facilitating a shift from processing exports to ordinary exports and from processing with assembly to processing with imported inputs. This article provides valuable insights into the driving forces behind the development of high-quality trade from the perspective of automation technology.

Suggested Citation

  • Mao, Qilin & Shi, Buchao, 2025. "Ordinary exports or processing exports? The role of industrial robots on the choice of export modes," Journal of Asian Economics, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:asieco:v:100:y:2025:i:c:s1049007825001344
    DOI: 10.1016/j.asieco.2025.102010
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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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