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Double whammy? Trade and automation in engineering services
Örebro University, School of Science and Technology.ORCID iD: 0000-0002-1470-6288
Örebro University, Örebro University School of Business. Norwegian Institute of International Affairs, Centre for International Economics and Trade, NUPI, Oslo, Norway.ORCID iD: 0000-0002-5944-3768
2024 (English)In: Review of International Economics, ISSN 0965-7576, E-ISSN 1467-9396, Vol. 32, no 4, p. 1493-1520Article in journal (Refereed) Published
Abstract [en]

This paper studies the role of trade for the joint uptake of AI-enabled automation in manufacturing and engineering. It develops an agent-based model (ABM) where the agents are heterogeneous manufacturers and engineering firms. The ABM features two technology-related business models: engineering as a face-to-face consultancy service and engineering as automated software. The software adoption rate follows an S-shaped curve for manufacturers and a boom and bust cycle for engineers. In the early phase, shortage of engineers constrains AI uptake, while engineers become abundant when AI is fully adopted. Trade affects the cut-off productivity level at which manufacturers switch technology, the shape of the adoption rate curve, and the incentives for engineers to develop software. Bulky transactions and different productivity distributions across countries are drivers of trade in their own right.

Place, publisher, year, edition, pages
John Wiley & Sons, 2024. Vol. 32, no 4, p. 1493-1520
Keywords [en]
agent based modelling, automation, technology adoption, trade
National Category
Economics
Identifiers
URN: urn:nbn:se:oru:diva-112454DOI: 10.1111/roie.12743ISI: 001178961000001Scopus ID: 2-s2.0-85186854173OAI: oai:DiVA.org:oru-112454DiVA, id: diva2:1845889
Funder
The Jan Wallander and Tom Hedelius FoundationTore Browaldhs stiftelse, P19-0234Available from: 2024-03-20 Created: 2024-03-20 Last updated: 2024-11-20Bibliographically approved

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Klügl, FranziskaKyvik Nordås, Hildegunn

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CiteExportLink to record
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  • apa
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