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Impact of industrial robot on labour productivity: Empirical study based on industry panel data

Author

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  • Zhao, Yantong
  • Said, Rusmawati
  • Ismail, Normaz Wana
  • Hamzah, Hanny Zurina

Abstract

This empirical analysis explores the impact of industrial robots on labour productivity using panel data of 17 Chinese industries from 2006 to 2021. The results reveal that the development of industrial robots significantly improves labour productivity; a series of robustness tests validate this outcome. However, the impact of industrial robots on labour productivity varies across industry types. The influence coefficient of the low-density robotics industry is larger than that of the high-density robotics industry. Furthermore, although the scale of industrial robot usage before 2012 was smaller than that after 2012, its effect on labour productivity was more significant. Our findings indicate the possibility of diminishing marginal effect of industrial robots in promoting labour productivity. The mechanism analysis demonstrates that human capital level has a complete intermediating effect between industrial robots and labour productivity. Thus, industrial robot applications can contribute to labour productivity by optimising human capital structure. These findings provide crucial insights for governments and policy makers to improve labour productivity and economic growth.

Suggested Citation

  • Zhao, Yantong & Said, Rusmawati & Ismail, Normaz Wana & Hamzah, Hanny Zurina, 2024. "Impact of industrial robot on labour productivity: Empirical study based on industry panel data," Innovation and Green Development, Elsevier, vol. 3(2).
    • Handle: RePEc:eee:ingrde:v:3:y:2024:i:2:s2949753124000250
    DOI: 10.1016/j.igd.2024.100148
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    Keywords

    China sectors; Industry level; Industrial robots; Labour productivity;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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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