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Global Robots

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  • Fabrizio Leone

Abstract

The diffusion of automation technology raises questions about the future of work, leading to calls for policy interventions. The ongoing debate centers on the decisions made by technology adopters. In this paper, I study supply-side adjustments and their role in shaping policy outcomes. I focus on the global market for industrial robots, a leading type of automation technology, where a few multinational enterprises (MNEs) dominate sales. To evaluate how these MNEs respond to policy changes, I collect new data on their characteristics and global sales networks. I then develop and estimate a multi-country general equilibrium model featuring oligopolistic multinational robot sellers. Using this model, I find that MNEs' market entry and pricing responses transmit internationally and amplify the aggregate and distributional effects of policies targeting robots.

Suggested Citation

  • Fabrizio Leone, 2024. "Global Robots," CESifo Working Paper Series 11537, CESifo.
    • Handle: RePEc:ces:ceswps:_11537
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    References listed on IDEAS

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    1. Nancey Green Leigh & Benjamin R. Kraft, 2018. "Emerging robotic regions in the United States: insights for regional economic evolution," Regional Studies, Taylor & Francis Journals, vol. 52(6), pages 804-815, June.
    2. Wiljan van den Berge, 2019. "Automatic Reaction – What Happens to Workers at Firms that Automate?," CPB Discussion Paper 390.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387.
    4. Wiljan van den Berge, 2019. "Automatic Reaction – What Happens to Workers at Firms that Automate?," CPB Discussion Paper 390, CPB Netherlands Bureau for Economic Policy Analysis.
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    6. Daron Acemoglu & Claire Lelarge & Pascual Restrepo, 2020. "Competing with Robots: Firm-Level Evidence from France," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 383-388, May.
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    Keywords

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • 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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