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Industrial robots and cross-regional investment

Author

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  • Huang, Zelin
  • Jiang, Pengcheng
  • Liu, Siyuan

Abstract

This paper examines the impact of industrial robots on cross-regional investment using subsidiary data from listed firms in China. We find that the industrial robot exposure in urban promotes enterprises cross-regional investment, suggesting that industrial robots can facilitate capital flows. This effect is particularly pronounced in non-state-owned enterprises. Furthermore, in regions with stronger segmentation in factor markets, the impact of industrial robots on cross-regional investment is even greater. The results of the mechanism test show that productivity and technology diffusion effect are important mechanisms which industrial robots promote cross-regional investment. At the same time, industrial robots can promote enterprises to choose to invest in cities with low labor and management costs. Additionally, we also find that industrial robots enhance the agglomeration effect of producer services in large cities and the agglomeration effect of manufacturing in small cities. At the same time, industrial robot promotes the flow of capital from large cities, central cities to small cities and peripheral cities. Finally, in the process of industrial robots driving cross-regional investment, they enhance the sales revenue and profitability of parent company, with cross-regional investment plays a significant role in promoting sales revenue.

Suggested Citation

  • Huang, Zelin & Jiang, Pengcheng & Liu, Siyuan, 2025. "Industrial robots and cross-regional investment," Pacific-Basin Finance Journal, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:pacfin:v:92:y:2025:i:c:s0927538x25001301
    DOI: 10.1016/j.pacfin.2025.102793
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