1. Does the high-tech foreign investment spark robot adoption in the developing world? Evidence from China.
- Author
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Yuan, Bo and Sun, Pengbo
- Subjects
- *
INDUSTRIAL robots , *FOREIGN investments , *ROBOTS , *ECONOMIC activity ,DEVELOPING countries - Abstract
• The entry of high-tech FDI does promote the robot adoption by domestic manufacturers in China. • A Bartik instrumental variable is constructed to address the endogeneity issue. • Two main influencing channels are detected: demonstration and competition. • The effect is more salient among enterprises with stronger absorptive capacity. • Different levels of dependence on labor and energy inputs lead to heterogeneity. With the intensification of transnational economic activities, industrial robots have been making inroads into developing countries. However, few studies have analyzed how foreign direct investment (FDI) affects the diffusion of industrial robots among domestic enterprises in developing countries. To bridge the gap, we combine several datasets to empirically examine the causal relationship between high-tech FDI and the robot adoption by domestic manufacturers in China. We discover a significantly positive impact of high-tech FDI on the adoption of industrial robots by domestic manufacturers, evidenced by the expansion in both stock and flow, as well as an increase in the variety of robots. Mechanism tests indicate that this effect can be achieved through both proactive learning and absorption of external technology, as well as through passive participation in more intense market competition. Moreover, the impact of high-tech FDI on robot adoption is more salient among enterprises with stronger absorptive capacity as well as those characterized by lower labor intensity and higher energy intensity. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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