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"The Impact of Robot Adoption on Global Sourcing"

Author

Listed:
  • Akin A. Cilekoglu

    (AQR-IREA Research Group, University of Barcelona.)

  • Rosina Moreno

    (AQR-IREA Research Group, University of Barcelona.)

  • Raul Ramos

    (AQR-IREA Research Group, University of Barcelona and IZA.)

Abstract

This paper studies the impact of robot adoption on firms’ global sourcing activities. Using a rich panel dataset of Spanish manufacturing firms, we show that robot adopting firms increased their intermediate input purchases from foreign and domestic suppliers between 2006 and 2016. The effects of robots differ across sourcing strategies: the highest in foreign outsourcing and the lowest in foreign vertical integration. We find that robot adopters fragment their production further by reducing the concentration of purchases from suppliers and the increase in intermediate input purchases is related to quality upgrading to a certain extent. Marginal treatment effects estimates suggest that responses to adoption are heterogeneous: higher probability of adoption intensifies the effects on outsourcing and weakens the effects on vertical integration. In contrast to rising concerns over reshoring, our findings suggest that robots have yet promoted trade in intermediate inputs.

Suggested Citation

  • Akin A. Cilekoglu & Rosina Moreno & Raul Ramos, 2021. ""The Impact of Robot Adoption on Global Sourcing"," IREA Working Papers 202108, University of Barcelona, Research Institute of Applied Economics, revised Apr 2021.
    • Handle: RePEc:ira:wpaper:202108
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    File URL: http://www.ub.edu/irea/working_papers/2021/202108.pdf
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    Cited by:

    1. Jing Lu & Jie Xu, 2025. "Intelligent Manufacturing and Corporate Offshoring Production: Estimation Based on Heterogeneity-Robust Nonlinear Difference-in-Differences Method," Sustainability, MDPI, vol. 17(13), pages 1-21, June.
    2. Franco, Chiara & Suppressa, Francesco, 2025. "Robot, trade and employment: Unravelling the relationship within the European context," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 407-422.
    3. Pinheiro, Alexandra & Sochirca, Elena & Afonso, Oscar & Neves, Pedro Cunha, 2023. "Automation and off(re)shoring: A meta-regression analysis," International Journal of Production Economics, Elsevier, vol. 264(C).
    4. Stemmler, Henry, 2023. "Automated Deindustrialization: How Global Robotization Affects Emerging Economies—Evidence from Brazil," World Development, Elsevier, vol. 171(C).
    5. Anna Giunta & Enrico Marvasi & Marco Sforza, 2025. "Digitalization and regionalization of Global Value Chains in European industries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 52(3), pages 599-628, September.
    6. Zheng, Dawei & Wang, Tingdong, 2025. "Do industrial robot applications upgrade the global value chain position? Empirical evidence from China," International Review of Economics & Finance, Elsevier, vol. 99(C).

    More about this item

    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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