Robotization as a driver of increased labour productivity and economic convergence or divergence in the European Union

Sammanfattning: During the years 2004-2014, the manufacturing sector within the EU countries witnessed an increase in the utilization of industrial robots, where robot density per worker approximately doubled. Considering that this is a rather recent event, studies investigating how much industrial robots impact labour productivity are still rare. At the same time, one of EU’s outspoken goals is that of working to foster productivity and economic convergence between the member states. Given the above premises, we have investigated the relation between the adoption rate of industrial robotics within the EU and its effect on labour productivity. Secondly, we have made a predictive convergence model, in terms of labour productivity. We have collected data from several sources, including the Industrial Federation of Robotics and EU KLMS, in order to build a dataset for our quantitative analysis. We have then used statistical methods such as multiple regressions and 3 stage least square analysis (3sls) to estimate our system of interdependent equations model. The results show that implementation of industrial robotics in the manufacturing sector is a driver of labour productivity. The model finally predicts upward labour productivity divergence between the member states in the years 2015-2025, assuming that the determining factors of labour productivity grow at the same pace in our forecast period as in our data sample.