IDEAS home Printed from https://ideas.repec.org/p/ris/kiepwp/2022_004.html
   My bibliography  Save this paper

The Effects of Robotization on Foreign Direct Investment

Author

Listed:

Abstract

This study aims to investigate the effects of robotization on foreign direct investment (FDI). We address this research question by providing a theoretical prediction derived from a simple model and then empirically testing our prediction. Theoretically, we found that an exogenous rise in industrial robots depresses both the robot rental rate and the domestic cost of task execution. Thus, it is more profitable to perform more tasks at home, leading to a decrease in FDI. Empirical results are summarized as follows. First, an increase in robotization in source countries negatively affects outward FDI. Second, this negative effect is not consistent across global regions.

Suggested Citation

  • Hong, Sungwoo & Kim, Wongi & Yoon, Yeo Joon, 2023. "The Effects of Robotization on Foreign Direct Investment," Working Papers 22-4, Korea Institute for International Economic Policy.
    • Handle: RePEc:ris:kiepwp:2022_004
    as

    Download full text from publisher

    File URL: https://www.kiep.go.kr/gallery.es?mid=a10105020000&bid=0001&act=view&list_no=10907&cg_code=C08
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Robotization; FDI;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:kiepwp:2022_004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Juwon Seo (email available below). General contact details of provider: https://edirc.repec.org/data/kieppkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.