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Global Robots

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  • Leone, Fabrizio

Abstract

The diffusion of automation technology raises questions about the future of work, leading to calls for regulation. The ongoing discussions center on the decisions of technology adopters. In this paper, I study how supply-side adjustments shape the effects of policy interventions. I focus on the global market of industrial robots, a leading type of automation technology, where a few multinational enterprises (MNEs) dominate sales. To evaluate how these MNEs respond to policy changes, I collect new data on their characteristics and global sales networks. I then develop and estimate a multi-country general equilibrium model featuring oligopolistic multinational robot sellers. Using this model, I find that MNEs’ market entry and pricing responses transmit internationally and amplify the aggregate and distributional effects of policies targeting robots.

Suggested Citation

  • Leone, Fabrizio, 2024. "Global Robots," CEPREMAP Working Papers (Docweb) 2403, CEPREMAP.
    • Handle: RePEc:cpm:docweb:2403
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    References listed on IDEAS

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    1. Dennis Novy, 2013. "Gravity Redux: Measuring International Trade Costs With Panel Data," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 101-121, January.
    2. Wiljan van den Berge, 2019. "Automatic Reaction – What Happens to Workers at Firms that Automate?," CPB Discussion Paper 390.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, November.
    4. Wiljan van den Berge, 2019. "Automatic Reaction – What Happens to Workers at Firms that Automate?," CPB Discussion Paper 390, CPB Netherlands Bureau for Economic Policy Analysis.
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    Keywords

    Multinational Enterprises; Market Power; Automation;
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