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Robots and Extensive Margins of Exports - Evidence for Manufacturing Firms from 27 EU Countries

Author

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  • Joachim Wagner

    (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre and Kiel Centre for Globalization)

Abstract

The use of robots by firms can be expected to go hand in hand with higher productivity, higher product quality and more product innovation, which should be positively related to export activities. This paper uses firm level data from the Flash Eurobarometer 486 survey conducted in February – May 2020 to investigate the link between the use of robots and export activities in manufacturing enterprises from the 27 member countries of the European Union. Applying standard parametric econometric models and a new machine-learning estimator, Kernel-Regularized Least Squares (KRLS), we find that firms which use robots do more often export, do more often export to various destinations all over the world, and do export to more different destinations. The estimated robots premium for extensive margins of exports is statistically highly significant after controlling for firm size, firm age, patents, and country. Furthermore, the size of this premium can be considered to be large. Extensive margins of exports and the use of robots are positively related.

Suggested Citation

  • Joachim Wagner, 2024. "Robots and Extensive Margins of Exports - Evidence for Manufacturing Firms from 27 EU Countries," Working Paper Series in Economics 426, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:426
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    References listed on IDEAS

    as
    1. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
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    5. Jean-Joseph Minviel & Faten Ben Bouheni, 2022. "The impact of research and development (R&D) on economic growth: new evidence from kernel-based regularized least squares," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 23(5), pages 583-604, July.
    6. Deng Liuchun & Plümpe Verena & Stegmaier Jens, 2024. "Robot Adoption at German Plants," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 244(3), pages 201-235, June.
    7. Ferwerda, Jeremy & Hainmueller, Jens & Hazlett, Chad J., 2017. "Kernel-Based Regularized Least Squares in R (KRLS) and Stata (krls)," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 79(i03).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Robots; exports; firm level data; Flash Eurobarometer 486; kernel-regularized least squares (KRLS);
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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