The application of industrial robots, global value chain integration and income distribution

The phenomenon of ‘replacing human with robots’ is a key example of the current technological revolution, with implications for income distribution among residents. Concurrently, integrating into global production networks has become a key strategy for nations’ production activities. The objective of our study is to incorporate the utilization of industrial robot into the theoretical framework of biased technological progress. It is salient to highlight that the utilization of industrial robots exacerbates income disparities between capital and labour, as well as between skilled and unskilled employees. This study selects panel data for 45 nations from 2005 to 2019, also lends support to our hypotheses outlined in the theoretical section. An investigation into the mechanisms reveals that the extensive adoption of industrial robots exacerbates the uneven distribution of income shares between capital and labour, as well as the disparities in job demand and wage levels among heterogeneous labour forces. The aforementioned mechanisms ultimately lead to the deterioration of income inequality among residents. Furthermore, this article reveals that active participation in the global value chains serves to mitigate the income gaps caused by robotics deployments. This study offers insights that can inform development of intelligent manufacturing and pursuit of common prosperity.