Abstract
This study investigates the relationship between the GVC integration of industries and their adoption of automation technology. I argue that integration into GVCs through forward and backward linkages of industries affects their adoption of automation technology positively through a learning and competition effect. Using a panel of industries from seven countries spanning 1993-2016, I provide evidence that backward linkages has a positive effect on the adoption of automation technology, while forward linkages is not significant. Furthermore, I investigate the importance of trade partners by taking into account the origin of intermediate imports and the destination of intermediate exports. Interacting forward linkages with intermediate exports to China shows that exporting more domestic value content in intermediate exports to China has a negative effect on the adoption of automation technology.
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