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Exporting And Productivity Growth: Evidence From The Taiwan Electronics Plants

Author

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  • Meng‐Wen Tsou
  • Jin‐Tan Liu
  • James K. Hammitt
  • Kuang‐Hsien Wang

Abstract

This paper uses propensity score matching techniques and ordinary least square regressions to examine the relationship between exporting and productivity growth in the Taiwan electronics industry. Using data from three census years, we find that plants with higher productivity growth tend to enter the export market, supporting the self‐selection mechanism. The evidence of learning‐by‐exporting is mixed, however. While the plants exporting throughout the sample period show small differences in productivity growth from non‐exporters in the downturn period, continuing exporters outperform non‐exporters in the upturn period. Thus, our results suggest that the direction of causality mainly runs from productivity to exporting rather than vice versa.

Suggested Citation

  • Meng‐Wen Tsou & Jin‐Tan Liu & James K. Hammitt & Kuang‐Hsien Wang, 2008. "Exporting And Productivity Growth: Evidence From The Taiwan Electronics Plants," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(2), pages 190-209, May.
    • Handle: RePEc:bla:scotjp:v:55:y:2008:i:2:p:190-209
    DOI: 10.1111/j.1467-9485.2008.00450.x
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    Cited by:

    1. Yang, Chih-Hai & Tsou, Meng-Wen, 2015. "Multinational exposure, export variety and price: Evidence from Chinese electronics exporters," Journal of the Japanese and International Economies, Elsevier, vol. 38(C), pages 93-110.
    2. Ciarli, Tommaso & Coad, Alex & Moneta, Alessio, 2023. "Does exporting cause productivity growth? Evidence from Chilean firms," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 228-239.
    3. repec:kap:iaecre:v:15:y:2009:i:2:p:169-177 is not listed on IDEAS
    4. Diana Alexandra Gonçalves Costa & Ana Teresa Cunha de Pinho Tavares Lehmann, 2015. "Performance Differences between Exporters and Non-Exporters: the Case of Portugal," FEP Working Papers 569, Universidade do Porto, Faculdade de Economia do Porto.
    5. Jacques MAIRESSE & Pierre MOHNEN & Yanyun ZHAO & Feng ZHEN, 2012. "Globalization, Innovation and Productivity in Manufacturing Firms: A Study of Four Sectors of China," Working Papers DP-2012-10, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Chih-Chin Ho & Hui-Lin Lin & Chih-Hai Yang & Ya-Pin Lyu, 2017. "Productivity Catch-up Between Chinese and Taiwanese Electronics Firms," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 533-553, October.
    7. Jin‐Tan Liu & Meng‐Wen Tsou & Ping Wang, 2010. "Workforce Composition And Firm Productivity: Evidence From Taiwan," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 1032-1047, October.
    8. Tommaso Ciarli & Alex Coad & Alessio Moneta, 2019. "Exporting and productivity as part of the growth process: Causal evidence from a data-driven structural VAR," LEM Papers Series 2019/39, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    9. Kazuhiko Yokota & Akinori Tomohara, 2009. "Extending the Learning-By-Exporting Hypothesis: Introducing a Credit Constraint," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 15(2), pages 169-177, May.
    10. Vu, Van Huong, 2012. "Higher productivity in Exporters: self-selection, learning by exporting or both? Evidence from Vietnamese manufacturing SMEs," MPRA Paper 40708, University Library of Munich, Germany.
    11. Son Thi Kim Le, 2019. "Innovation efforts in developing countries: The case of Vietnamese small and medium-sized enterprises," WIDER Working Paper Series wp-2019-7, World Institute for Development Economic Research (UNU-WIDER).

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