Robots, Tasks and Trade
This paper examines the effects of robotization on trade patterns, wages and welfare. It develops a Ricardian model with two-stage production and trade in intermediate and final goods in which robots can take over some tasks previously performed by...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/269231544735360818/Robots-Tasks-and-Trade http://hdl.handle.net/10986/31076 |
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okr-10986-310762022-09-19T12:16:28Z Robots, Tasks and Trade Artuc, Erhan Bastos, Paulo Rijkers, Bob AUTOMATION ROBOTS JOBS WAGES TRADE INTERMEDIATE INPUTS GLOBAL VALUE CHAINS GAINS FROM TRADE This paper examines the effects of robotization on trade patterns, wages and welfare. It develops a Ricardian model with two-stage production and trade in intermediate and final goods in which robots can take over some tasks previously performed by humans in a subset of industries. An increase in robot adoption in the North reduces the cost of production and thereby impacts trade in final and intermediate goods with the South. The empirical analysis uses ordinary least squares and instrumental variable regressions exploiting variation in exposure to robots across countries and sectors. Both reveal that greater robot intensity in own production leads to: (i) a rise in imports sourced from less developed countries in the same industry; and (ii) an even stronger increase in exports to those countries. Counterfactual simulations indicate that Northern robotization raises domestic welfare, but initially depresses wages. However, this adverse effect is likely to be reversed by further reductions in robot prices. Northern robotization may lead to higher wages and welfare in the South. 2018-12-28T15:35:42Z 2018-12-28T15:35:42Z 2018-12 Working Paper http://documents.worldbank.org/curated/en/269231544735360818/Robots-Tasks-and-Trade http://hdl.handle.net/10986/31076 English Policy Research Working Paper;No. 8674 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
| building |
World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
AUTOMATION ROBOTS JOBS WAGES TRADE INTERMEDIATE INPUTS GLOBAL VALUE CHAINS GAINS FROM TRADE |
| spellingShingle |
AUTOMATION ROBOTS JOBS WAGES TRADE INTERMEDIATE INPUTS GLOBAL VALUE CHAINS GAINS FROM TRADE Artuc, Erhan Bastos, Paulo Rijkers, Bob Robots, Tasks and Trade |
| relation |
Policy Research Working Paper;No. 8674 |
| description |
This paper examines the effects of
robotization on trade patterns, wages and welfare. It
develops a Ricardian model with two-stage production and
trade in intermediate and final goods in which robots can
take over some tasks previously performed by humans in a
subset of industries. An increase in robot adoption in the
North reduces the cost of production and thereby impacts
trade in final and intermediate goods with the South. The
empirical analysis uses ordinary least squares and
instrumental variable regressions exploiting variation in
exposure to robots across countries and sectors. Both reveal
that greater robot intensity in own production leads to: (i)
a rise in imports sourced from less developed countries in
the same industry; and (ii) an even stronger increase in
exports to those countries. Counterfactual simulations
indicate that Northern robotization raises domestic welfare,
but initially depresses wages. However, this adverse effect
is likely to be reversed by further reductions in robot
prices. Northern robotization may lead to higher wages and
welfare in the South. |
| format |
Working Paper |
| author |
Artuc, Erhan Bastos, Paulo Rijkers, Bob |
| author_facet |
Artuc, Erhan Bastos, Paulo Rijkers, Bob |
| author_sort |
Artuc, Erhan |
| title |
Robots, Tasks and Trade |
| title_short |
Robots, Tasks and Trade |
| title_full |
Robots, Tasks and Trade |
| title_fullStr |
Robots, Tasks and Trade |
| title_full_unstemmed |
Robots, Tasks and Trade |
| title_sort |
robots, tasks and trade |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/269231544735360818/Robots-Tasks-and-Trade http://hdl.handle.net/10986/31076 |
| _version_ |
1764473549165166592 |