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<p>In the pursuit of reducing production costs, many firms are relocating their offshored activities from developing economies back to their home countries. This reshoring trend has recently garnered much attention, as automation in advanced countries may have major implications not only on their own economies but also for those of low-income countries. While using robots to substitute for human labour can lower the relative costs of producing at home, it may also reduce employment and demand for exports from developing economies. In this paper, we analyse the impact of automation in regions with the highest rates of robot adoption on exports and imports. We examine 155 developed and developing countries over the period from 1993 to 2021. We find that the effects of robot adoption on exports and imports in both developed and developing countries depend on the region where robotization occurs. There is a strong positive association between regional robotization and trade within advanced countries. However, we observe a significant decline in exports from developing countries, indicating not only stagnating offshoring initiatives but also an increase in reshoring.</p>

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The Role of Robotization in Reshoring and the Implications on International Trade

  • 期刊论文

  • 发表日期：

    2025年7月11日

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  • Thinh Huu Nguyen,
  • Shahab Sharfaei,
  • Jindřich Soukup

摘要

In the pursuit of reducing production costs, many firms are relocating their offshored activities from developing economies back to their home countries. This reshoring trend has recently garnered much attention, as automation in advanced countries may have major implications not only on their own economies but also for those of low-income countries. While using robots to substitute for human labour can lower the relative costs of producing at home, it may also reduce employment and demand for exports from developing economies. In this paper, we analyse the impact of automation in regions with the highest rates of robot adoption on exports and imports. We examine 155 developed and developing countries over the period from 1993 to 2021. We find that the effects of robot adoption on exports and imports in both developed and developing countries depend on the region where robotization occurs. There is a strong positive association between regional robotization and trade within advanced countries. However, we observe a significant decline in exports from developing countries, indicating not only stagnating offshoring initiatives but also an increase in reshoring.