Abstract
Rapid advancements in robotics signal a scientific breakthrough which could have major implications for the world economy and the field of economics. This paper reviews recent literature on this topic to examine the evidence from two perspectives. First, I critically review the theoretical literature on the effects of robot adoption on employment and analyse the capacity of different theories in describing these influences. Second, I explain in detail, the impact of robot technology on the economy from two perspectives, namely, employment and reshoring. The paper evaluates the current empirical evidence on these dimensions and highlights the limitations in the literature.