We investigate the effects of automation on total factor productivity (TFP). Using Industry-level panel data for nine countries, we find that more intensive use of industrial robots has a significantly positive effect on TFP. Specifically, an increase of one standard deviation in the robot intensity is associated with more than 6% higher TFP. Moreover, we find that the robot intensity increases with Chinese import competition and that automation is associated with higher wages and unchanged or higher employment.
|Journal||Industrial and Corporate Change|
|Number of pages||23|
|Publication status||Published - Apr 2020|