Automation and Manufacturing Performance in a Developing Country

This paper provides novel evidence on the economic impact of industrial automation in a large developing economy. It combines labor force survey and manufacturing plant-level data from Indonesia over 2008–15, when the country experienced a rapid in...

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Main Authors:	Cali, Massimiliano, Presidente, Giorgio
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	AUTOMATION ROBOTS GLOBAL VALUE CHAIN EMPLOYMENT PRODUCTIVITY LABOR FORCE SURVEY
Online Access:	http://documents.worldbank.org/curated/en/853801620651245338/Automation-and-Manufacturing-Performance-in-a-Developing-Country http://hdl.handle.net/10986/35566

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recordtype	oai_dc
spelling	okr-10986-355662022-09-20T00:09:06Z Automation and Manufacturing Performance in a Developing Country Cali, Massimiliano Presidente, Giorgio AUTOMATION ROBOTS GLOBAL VALUE CHAIN EMPLOYMENT PRODUCTIVITY LABOR FORCE SURVEY This paper provides novel evidence on the economic impact of industrial automation in a large developing economy. It combines labor force survey and manufacturing plant-level data from Indonesia over 2008–15, when the country experienced a rapid increase in imports of robots. The findings show a positive impact of robots on various measures of plants’ performance and integration into global value chains. In contrast to existing evidence on advanced and emerging economies, these plant-level impacts result in an increase in manufacturing and services employment at the local level. Such employment effects are consistent with evidence of positive employment spillovers from downstream robot-adopting plants, which help extend the benefits of automation to non-adopting plants. The spillover effects may provide a rationale to incentivize manufacturing firms to adopt industrial robots. The results also suggest that the gains from automation are not equally shared: adoption of robots is associated with a reduction in the labor share in value added and an increase in skill wage premia. 2021-05-13T14:56:28Z 2021-05-13T14:56:28Z 2021-05 Working Paper http://documents.worldbank.org/curated/en/853801620651245338/Automation-and-Manufacturing-Performance-in-a-Developing-Country http://hdl.handle.net/10986/35566 English Policy Research Working Paper;No. 9653 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AUTOMATION ROBOTS GLOBAL VALUE CHAIN EMPLOYMENT PRODUCTIVITY LABOR FORCE SURVEY
spellingShingle	AUTOMATION ROBOTS GLOBAL VALUE CHAIN EMPLOYMENT PRODUCTIVITY LABOR FORCE SURVEY Cali, Massimiliano Presidente, Giorgio Automation and Manufacturing Performance in a Developing Country
geographic_facet	East Asia and Pacific Indonesia
relation	Policy Research Working Paper;No. 9653
description	This paper provides novel evidence on the economic impact of industrial automation in a large developing economy. It combines labor force survey and manufacturing plant-level data from Indonesia over 2008–15, when the country experienced a rapid increase in imports of robots. The findings show a positive impact of robots on various measures of plants’ performance and integration into global value chains. In contrast to existing evidence on advanced and emerging economies, these plant-level impacts result in an increase in manufacturing and services employment at the local level. Such employment effects are consistent with evidence of positive employment spillovers from downstream robot-adopting plants, which help extend the benefits of automation to non-adopting plants. The spillover effects may provide a rationale to incentivize manufacturing firms to adopt industrial robots. The results also suggest that the gains from automation are not equally shared: adoption of robots is associated with a reduction in the labor share in value added and an increase in skill wage premia.
format	Working Paper
author	Cali, Massimiliano Presidente, Giorgio
author_facet	Cali, Massimiliano Presidente, Giorgio
author_sort	Cali, Massimiliano
title	Automation and Manufacturing Performance in a Developing Country
title_short	Automation and Manufacturing Performance in a Developing Country
title_full	Automation and Manufacturing Performance in a Developing Country
title_fullStr	Automation and Manufacturing Performance in a Developing Country
title_full_unstemmed	Automation and Manufacturing Performance in a Developing Country
title_sort	automation and manufacturing performance in a developing country
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/853801620651245338/Automation-and-Manufacturing-Performance-in-a-Developing-Country http://hdl.handle.net/10986/35566
_version_	1764483302092177408

Automation and Manufacturing Performance in a Developing Country

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