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<p>This study documents the relationship between automation and firm productivity, innovation, and employment using firm-level data from 36 developing countries. To identify firms that use automation technologies, we employ a text-based approach to the World Bank Enterprise Survey. We find a positive correlation between the adoption of automation and firm productivity. Furthermore, we observe that firms with automation are more likely to introduce new products or services. These firms are less likely to imitate existing products/services in the market; rather, they introduce a product/ service that is new to the market. Finally, automation adoption is not at the cost of employment. Our findings suggest that automation is positively associated with the number of skilled workers and negatively associated with the number of unskilled workers.</p>

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Automation, firm performance, and employment: Evidence from developing countries

  • 期刊论文

  • 发表日期：

    2025年8月9日

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  • Radeef Chundakkadan,
  • Subash Sasidharan,
  • Kausik Chaudhuri

摘要

This study documents the relationship between automation and firm productivity, innovation, and employment using firm-level data from 36 developing countries. To identify firms that use automation technologies, we employ a text-based approach to the World Bank Enterprise Survey. We find a positive correlation between the adoption of automation and firm productivity. Furthermore, we observe that firms with automation are more likely to introduce new products or services. These firms are less likely to imitate existing products/services in the market; rather, they introduce a product/ service that is new to the market. Finally, automation adoption is not at the cost of employment. Our findings suggest that automation is positively associated with the number of skilled workers and negatively associated with the number of unskilled workers.