Title: Robots and firm total factor productivity: evidence from China

Authors: Bowen Li; Xin Liu; Cai Zhou

Addresses: School of Economics, Lanzhou University, Lanzhou 730000, China ' HSBC Business School, Peking University, Shenzhen 518055, China ' School of Public Finance and Taxation, Shandong University of Finance and Economics, Jinan 250014, China

Abstract: Utilising data of robot application in prefecture-level and Chinese listed firms from 2003 to 2017, this research investigates the impact of industrial robots on the firm total factor productivity (TFP). Empirical results show that the application of industrial robots can boost the growth of firm TFP. The conclusion holds after multiple robustness tests taking into account the effects of the industry, different estimation methods, and instrumental variables. Moreover, the results indicate that the effects of industrial robots enhance firm TFP is particularly evident for non-state-owned enterprises, capital-intensive industries, firms with less financial constraints, and those located in eastern regions. Mechanism analysis shows that industrial robots improve firm TFP by boosting innovation vitality and operation efficiency. These findings help deepen the understanding of how industrial robots shape the TFP at the firm level, and provide policy implications for promoting technology and economic development.

Keywords: industrial robot; firm total factor productivity; TFP; innovation vitality; operation efficiency.

DOI: 10.1504/IJTM.2025.144817

International Journal of Technology Management, 2025 Vol.97 No.4, pp.517 - 539

Received: 23 Dec 2023
Accepted: 16 Sep 2024
Published online: 03 Mar 2025 *

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