Robot Imports and Firms' Export Adjustment: Evidence From Chinese Exporters

In the context of the Industry 4.0 revolution, it is a critical period to enhance technological capabilities and innovation. On the basis of matched data from the Customs database and the Annual Survey of Industrial Firms in China, we employ panel fixed effects and instrumental variable methods to investigate the impact of firms' robot imports on their export product adjustments. Our study finds that importing robots significantly increases the variety and value of both new and existing products exported, while also facilitating the exit of obsolete products from the market. This process promotes the renewal and iteration of firms' export products. These results remain robust after a series of robustness checks. Mechanism tests indicate that the promotion effect of robot imports on firms' export product adjustments mainly stems from improvements in innovation capabilities, labour productivity and financial performance.