Automation and Productivity – A Cross‐Country, Cross‐Industry Comparison

28 Pages Posted: 8 Jan 2018

See all articles by Lene Kromann

Lene Kromann

University of Southern Denmark - Department of Business and Economics; Copenhagen Business School - Center for Economic and Business Research (CEBR)

Nikolaj Malchow-Møller

University of Southern Denmark - Department of Business and Economics

Jan Rose Skaksen

Copenhagen Business School - Department of Economics; IZA Institute of Labor Economics

Anders Sorensen

Copenhagen Business School - Department of Economics

Date Written: March 29, 2016

Abstract

We investigate the effects of automation on total factor productivity (TFP). Using industry‐level panel data for nine countries, we find that a 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 5 percent 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.

Keywords: Industrial Robots, TFP, Chinese Import Competition

JEL Classification: O33, J24, C23, O47

Suggested Citation

Kromann, Lene and Malchow-Møller, Nikolaj and Skaksen, Jan Rose and Sorensen, Anders, Automation and Productivity – A Cross‐Country, Cross‐Industry Comparison (March 29, 2016). Available at SSRN: https://ssrn.com/abstract=3096432 or http://dx.doi.org/10.2139/ssrn.3096432

Lene Kromann

University of Southern Denmark - Department of Business and Economics ( email )

DK-5230 Odense
Denmark

Copenhagen Business School - Center for Economic and Business Research (CEBR) ( email )

Porcelænshaven 16F
Frederiksberg, Copenhagen DK-2000
Denmark

Nikolaj Malchow-Møller

University of Southern Denmark - Department of Business and Economics ( email )

DK-5230 Odense
Denmark

Jan Rose Skaksen

Copenhagen Business School - Department of Economics ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark
+45 38152582 (Phone)
+45 3815 2576 (Fax)

HOME PAGE: http://old.cbs.dk/staff/janroseskaksen/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Anders Sorensen (Contact Author)

Copenhagen Business School - Department of Economics ( email )

Porcelaenshaven 16A
DK-2000 Frederiksberg
Denmark
+45 3815 3493 (Phone)
+45 3815 2576 (Fax)

HOME PAGE: http://www.cbs.dk/en/staff/aseco

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