How artificial intelligence affects international industrial transfer — Evidence from industrial robot application

Abstract

The development of high technology represented by artificial intelligence is an essential driver of international industrial transfer. Using country-industry-level industrial robot data and value-added trade data from 2002 to 2018, this paper empirically examines the impact and mechanism of artificial intelligence on the international industrial transfer undertaken by a country (region). The study shows that the application of artificial intelligence can significantly enhance the international industrial transfer undertaken by a country (region). Further analysis shows that artificial intelligence positively affects international industry transfer through two channels: Improving the quality of labor force and promoting the level technological innovation. Further heterogeneity analysis shows that, first, from the economic development degree perspective, artificial intelligence's role in promoting developing economies is more substantial than that in developed economies. Second, the financial crisis has weakened the impact of artificial intelligence on international industrial transfer from the perspective of time division，especially in developing economies. Third, from the perspective of industry heterogeneity, artificial intelligence has significantly promoted the transfer of medium-low and medium-high technology industries. The research in this paper extends the analysis of the effect of artificial intelligence. It provides realistic insights for optimizing the strategic layout of the robotics industry, achieving industrial structure upgrading, optimizing resource allocation efficiency, and grasping the opportunities of global industrial chain restructuring.