Disruptive Displacement: The Impacts of Industrial Robots on the Energy Industry’s International Division of Labor from a Technological Complexity View

Abstract

In light of the growing economic uncertainties worldwide, the use of industrial robots has emerged as a significant opportunity for improving the production efficiency and the international division of labor in China’s energy industry. This study employed a two-way fixed-effect model utilizing data from 31 Chinese provinces between 2011 and 2019 to investigate the impact of industrial robots on the energy industry’s participation in the international division of labor. The results of the study indicated that the widespread application of industrial robots can boost the international division of labor status of China’s energy sector. This conclusion remains robust even after addressing the potential endogeneity issues and conducting a range of sensitivity tests. Furthermore, our findings suggest that the regions that possess abundant energy resources or exhibit a lower carbon intensity are more likely to leverage the use of industrial robots to increase the technological sophistication and enhance their participation in the international division of labor. The application of industrial robots in the energy industry can enhance the international division of labor through two distinct channels: optimizing the factor structure and reducing the export costs. Our findings have important policy implications for ensuring energy security and improving the energy industry’s participation in the international division of labor.