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Journal article

Institutions, holdup and automation

Abstract:
What drives investment in automation technologies? This paper documents a positive relationship between labor-friendly institutions and investment in industrial robots in a sample of advanced and developing economies. Institutions explain a substantial share of cross-country variation in automation. The relationship between institutions and robots is stronger in sunk cost-intensive industries, where producers are vulnerable to holdup. The result suggests that one reason for producers to invest in automation is to thwart rent appropriation by labor.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1093/icc/dtac060

Authors

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Institution:
University of Oxford
Division:
SSD
Role:
Author


Publisher:
Oxford University Press
Journal:
Industrial and Corporate Change More from this journal
Volume:
32
Issue:
4
Pages:
831-847
Publication date:
2023-01-10
Acceptance date:
2022-11-25
DOI:
EISSN:
1464-3650
ISSN:
0960-6491


Language:
English
Keywords:
Pubs id:
1310757
Local pid:
pubs:1310757
Deposit date:
2022-11-30
ARK identifier:

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