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Robots For Economic Development

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  • Calì, Massimiliano
  • Presidente, Giorgio

Abstract

Recent evidence suggests that automation technologies entail a trade-off between produc- tivity gains and employment losses for the economies that adopt them. This paper casts doubts on such trade-off in the context of a developing country. It shows significant productivity and employment gains from automation in Indonesian manufacturing during the years 2008-2015, a period of rapid increase in robot imports. Analysis based on manufacturing plant data provides evidence that the absence of this trade-off is due to diminishing productivity returns to robot adoption. As a result, the benefits from automation could be particularly large for countries at early stages of industrialisation, such as Indonesia. Suggestive evidence indicates these results could apply to developing countries more generally.

Suggested Citation

  • Calì, Massimiliano & Presidente, Giorgio, 2022. "Robots For Economic Development," EconStor Preprints 242497, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:242497
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    1. Chen, Chinchih & Frey, Carl Benedikt & Presidente, Giorgio, 2022. "Automation or globalization? The impacts of robots and Chinese imports on jobs in the United Kingdom," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 528-542.

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    More about this item

    Keywords

    Robots; Automation; Development; Productivity; Employment;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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