Robotics and the global organisation of production

Abstract

The growing investment in robotics is an important aspect of the increasing digitalisation of economy. Economic research has begun to consider the role of robotics in modern economies, but the empirical analysis remains overall limited. The empirical evidence of effects of robotics on employment is mixed, as shown in the review in this chapter. The effects of robots on economies go further than employment effects, as there are impacts for the organisation of production in global value chains. These change the division of labour between richer and poorer economies. Robotics may reduce offshoring of activities from developed economies towards emerging economies. Global spreading of automation with robotics can lead to faster de-industrialisation in the development process. Low-cost jobs in manufacturing may increasingly be conducted by robots such that fewer jobs than expected may be on offer for humans even if industries were to grow in emerging economies.