The Impact of Robot Adoption on Global Sourcing

45 Pages Posted: 10 Apr 2021

See all articles by Akin Cilekoglu

Akin Cilekoglu

University of Barcelona

Rosina Moreno

University of Barcelona - Department of Econometrics

Raul Ramos

University of Barcelona - AQR; IZA Institute of Labor Economics

Abstract

This paper studies the impact of robot adoption on firms' global sourcing activities. Using a rich panel dataset of Spanish manufacturing firms, we show that robot adopting firms increased their intermediate input purchases from foreign and domestic suppliers between 2006 and 2016. The effects of robots differ across sourcing strategies: the highest in foreign outsourcing and the lowest in foreign vertical integration. We find that robot adopters fragment their production further by reducing the concentration of purchases from suppliers and the increase in intermediate input purchases is related to quality upgrading to a certain extent. Marginal treatment effects estimates suggest that responses to adoption are heterogeneous: higher probability of adoption intensifies the effects on outsourcing and weakens the effects on vertical integration. In contrast to rising concerns over reshoring, our findings suggest that robots have yet promoted trade in intermediate inputs.

JEL Classification: F14, F23, L23

Suggested Citation

Cilekoglu, Akin and Moreno, Rosina and Ramos, Raul, The Impact of Robot Adoption on Global Sourcing. IZA Discussion Paper No. 14255, Available at SSRN: https://ssrn.com/abstract=3823622

Akin Cilekoglu (Contact Author)

University of Barcelona

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

Rosina Moreno

University of Barcelona - Department of Econometrics ( email )

Analisi Quantitativa Regional Research Group
08007 Barcelona
Spain

Raul Ramos

University of Barcelona - AQR ( email )

Dpt. Econometrics, Statistics and Spanish Economy
Avda. Diagonal 690
Barcelona, Barcelona 08034
Spain

HOME PAGE: http://www.raulramos.cat

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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