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Automation Imports and Upgrading in Firm Production Networks

Author

Listed:
  • Seda Koymen Ozer

    (Baskent University, Ankara, Turkey)

  • Alessia Lo Turco

    (Department of Economics and Social Sciences, Universita' Politecnica delle Marche (UNIVPM))

  • Daniela Maggioni

    (Department of Economics, Catholic University of the Sacred)

Abstract

We investigate how the import of automation impacts upgrading within firm production networks. We use comprehensive data on product mix, foreign trade, balance sheets, employment, and firm-to-firm transactions for Turkish manufacturing firms from 2009 to 2020. By employing Propensity Score Matching (PSM) alongside event study analyses and an instrumental variable (IV) approach, our research provides robust evidence that firms importing automation enhance the quality and lower quality-adjusted prices of their products. Importantly, the benefits of automation extend downstream throughout the supply chain to firms sourcing inputs from suppliers that have adopted automation. No significant effects propagate, instead, to upstream firms supplying automation adopters.

Suggested Citation

  • Seda Koymen Ozer & Alessia Lo Turco & Daniela Maggioni, 2025. "Automation Imports and Upgrading in Firm Production Networks," Working Papers 495, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    • Handle: RePEc:anc:wpaper:495
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    More about this item

    Keywords

    buyer-supplier links; product upgrading; manufacturing; Turkiye;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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