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Automation and asymmetric international spillovers of technological shocks

Author

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  • Shohei Momoda
  • Takayuki Ogawa
  • Ryosuke Shimizu

Abstract

This study examines international spillover effects of technological shocks using a dynamic open economy model in which production tasks are automated by robots. A concentration of robot production in a few countries worldwide is essential to understanding automation advances and robot price declines in a globalized economy. Technological improvements in robot‐producing countries decrease world robot prices and affect automation advances in other countries specializing in non‐robot production; however, the reverse is not true. The welfare effects are also asymmetric and depend on the type of technological shocks. For example, by improving the productivity of investment in robots, the non‐robot producing countries suffer from the deteriorated terms of trade and may become worse off depending on the global wealth distribution. Automatisation et retombées internationales asymétriques des chocs technologiques. Cette étude examine les retombées internationales des chocs technologiques à l'aide d'un modèle dynamique d'économie ouverte dans lequel les tâches de production sont automatisées par des robots. La concentration de la production de robots dans certains pays est essentielle pour comprendre les progrès de l'automatisation et les baisses de prix des robots dans une économie mondialisée. Les améliorations technologiques dans les pays producteurs de robots font baisser les prix mondiaux des robots et ont une incidence sur les progrès de l'automatisation dans d'autres pays non producteurs de robots, mais l'inverse n'est pas vrai. Les effets sur le bien‐être sont également asymétriques et dépendent du type de chocs technologiques. Par exemple, en améliorant la productivité des investissements dans les robots, les pays non producteurs de robots pâtissent de la détérioration des conditions commerciales et peuvent voir leur situation se dégrader en fonction de la répartition de la richesse mondiale.

Suggested Citation

  • Shohei Momoda & Takayuki Ogawa & Ryosuke Shimizu, 2025. "Automation and asymmetric international spillovers of technological shocks," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 58(2), pages 642-689, May.
    • Handle: RePEc:wly:canjec:v:58:y:2025:i:2:p:642-689
    DOI: 10.1111/caje.12761
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