Industrial Robots, Factor Market Distortion, and Productivity

IF 2.5 3区经济学 Q2 ECONOMICS

Managerial and Decision Economics Pub Date : 2024-11-04 DOI:10.1002/mde.4422

Shaojian Chen, Dingyun Duan, Hua Wang

引用次数: 0

Abstract

We find that robot adoption significantly increases firm-level TFP, but factor market distortion hinders the promotion effect of robot adoption on firm-level TFP. Mechanism analysis reveals that the cost-saving and labor productivity improvements brought about by industrial robot application stimulate market entry by new firms and elevate the exit risk for incumbent enterprises. This dynamic intensifies competition, resulting in an enhanced market environment that contributes to firm-level TFP. However, factor market distortions impede the survival of the fittest among firms and stifle the competitive effects of market entry and exit. This ultimately leads to sluggish growth in firm-level TFP.

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来源期刊

Managerial and Decision Economics Multiple-

CiteScore

1.40

自引率

18.20%

发文量

242

期刊介绍： Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.