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Industrial robot application and markup rates: Evidence from Chinese manufacturing firms (2011-2022)

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  • Wang, Luyu
  • Fang, Qiyun
  • Zhang, Jisen

Abstract

Through in-depth research on the impact of industrial robot application on the markup rate of manufacturing enterprises and its action mechanism, it is revealed that industrial robot application has a notably positive influence on the markup rate. For every 1 % increase in the application rate of industrial robots, the markup rate increases by 0.013 units and passes the 1 % significance test. Moreover, industrial robot application can boost the markup rate by promoting technological progress and cutting operating costs. Sub - group analysis shows regional and ownership heterogeneities. The effect is more pronounced in manufacturing enterprises in the eastern and central regions and in private enterprises. These findings provide a theoretical basis for the application of industrial robots in manufacturing enterprises and offer references for the government's policy - making.

Suggested Citation

  • Wang, Luyu & Fang, Qiyun & Zhang, Jisen, 2025. "Industrial robot application and markup rates: Evidence from Chinese manufacturing firms (2011-2022)," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007263
    DOI: 10.1016/j.frl.2025.107467
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    References listed on IDEAS

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    1. Alexandre Corhay & Howard Kung & Lukas Schmid & Stijn Van Nieuwerburgh, 2020. "Competition, Markups, and Predictable Returns," The Review of Financial Studies, Society for Financial Studies, vol. 33(12), pages 5906-5939.
    2. Jan De Loecker & Frederic Warzynski, 2012. "Markups and Firm-Level Export Status," American Economic Review, American Economic Association, vol. 102(6), pages 2437-2471, October.
    3. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    4. Devesh Raval, 2023. "Testing the Production Approach to Markup Estimation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(5), pages 2592-2611.
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    Cited by:

    1. Yang, Zhiwei & Yang, Jiahui & Wang, Wei, 2025. "Labor protection policy and firm markup: Evidence from the implementation of the China social insurance law," Finance Research Letters, Elsevier, vol. 82(C).

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