Automation and Productivity – A Cross‐Country, Cross‐Industry Comparison

We investigate the effects of automation on total factor productivity (TFP). Using industry‐level panel data for nine countries, we find that a more intensive use of industrial robots has a significantly positive effect on TFP. Specifically, an increase of one standard deviation in the robot intensity is associated with more than 5 percent higher TFP. Moreover, we find that the robot intensity increases with Chinese import competition and that automation is associated with higher wages and unchanged or higher employment.