Industrial Robots and Firm Markups: Evidence from China's Manufacturing Sector

About this Event

How does industrial automation affect firm market power? This seminar examines how robot exposure changes markups, costs and productivity in China's manufacturing sector. Does industrial automation strengthen firms' market power? This seminar examines how exposure to industrial robots affects firm markups, operating costs and productivity in China's manufacturing sector, using measures of robot exposure at both the industry and city levels. Greater robot exposure reduces average firm markups, with the largest declines among firms with initially high markups. In China, these firms tend to be smaller, younger and privately owned. Their operating costs rise following robot adoption, consistent with adjustment costs that compress markups. Other firms experience declines in…

This preview is intentionally limited. Unlock full access to view complete context, speakers, and supporting event materials.