ABSTRACT In this study, we first construct a theoretical framework for a heterogeneous product quality model to analyse how robot adoption affects international trade through quality upgrading. Then, we use micro-level data from Chinese Customs Trade Statistics and the Annual Survey of Industrial Firms to examine the heterogeneous effects of industrial robots on export product quality. Both theoretical analysis and empirical research show that industrial robots promote export product quality upgrading through effectively improving firms’ total factor productivity and reducing marginal production costs. Moreover, industrial robots have different effects on firms based on product types, ownership properties, and factor intensity. The results show that the effects of industrial robots on export product quality are stronger for homogeneous products, foreign and private enterprises for homogeneous products, foreign and private enterprises, and labour-intensive industries. These findings align with the literature on the wide-ranging impact of industrial robots, while offering a distinct opportunity to empirically investigate enterprises’ diverse responses to a uniform general-purpose technology. This study also diverges from previous research by examining a previously overlooked dimension: productivity-boosting and marginal cost-reducing effects.
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