How Industrial Robots Are Reshaping the Division of Labour in Global Value Chains—On the Basis of the Production Length Perspective

ABSTRACT Amid a profound global transformation, the world is witnessing a new wave of automation that substitutes labour, creating opportunities for developing economies to adjust their roles in the division of labour traditionally dominated by developed countries and contribute to the restructuring of global value chains. This study compiles industrial robot data from the IFR database, the Eora Multi‐Region Input–Output tables, and the World Development Indicators (WDI) to assemble a panel dataset covering 2005–2021. It empirically investigates the impact of industrial robot adoption on the manufacturing‐related global value chain division of labour and its operative mechanisms. The empirical results indicate that industrial robots extend backward linkage while reducing forward linkage, with more pronounced effects in developed economies and high‐tech sectors. Regarding transmission channels, robot adoption inhibits forward division by elevating downstream supply chain concentration and diminishing the export share of medium‐ and high‐tech products, while facilitating backward division through stimulating outward foreign direct investment and reducing trade costs. This study offers policy implications for developing economies, including China, aimed at responding to the restructuring of global industrial chains and advancing a new development paradigm in which domestic circulation plays a central role whereas domestic and international cycles mutually reinforce each other.