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Estimating the effects of robotization on exports

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  • Ndubuisi, Gideon

    (UNU-MERIT)

  • Avenyo, Elvis

    (UNU-MERIT)

Abstract

Digitalization and robotization are two essential aspects of modern technological advancement. Albeit, the former has gained scholastic attention of empirical trade economists, the latter has not. This paper, therefore, examines the impact of robotization on trade. Specifically, we estimate empirically the effect of robotization on total exports, and further examine its effect on the different export margins. We find robust evidence that robotization increases total exports, and this effect works both along the extensive (number of exported product varieties) and intensive margins (average value of exported product variety). Results obtained using the volume and price of exports suggest that the positive effect of robotization on the intensive margin is driven by increases in both the quantity and unit prices of exports. Redefining the margins as the number of market destinations and the number of product by market destination, our results also show a positive effect of robotization.

Suggested Citation

  • Ndubuisi, Gideon & Avenyo, Elvis, 2018. "Estimating the effects of robotization on exports," MERIT Working Papers 2018-046, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2018046
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    More about this item

    Keywords

    Robotization; Exports; Extensive and Intensive Margins;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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