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Taiwanese industry competitiveness when outward FDI is defensive

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Author Info

  • Sun, Ling
  • Fulginiti, Lilyan E.
  • Chen, Yo-Chan

Abstract

The main purpose of this study is to examine the links between outward FDI and the competitiveness of Taiwanese industries. This is done by emphasizing the difference between 'defensive' versus 'expansionary' outward FDI. The empirical study is based on a panel data of 15 industries over the period 1991-2001. The results indicate that outward FDI of the defensive type, in particular that destined to China, while increasing industry efficiency has had a significant negative influence on competitiveness of the Taiwanese industry through its effects on innovative activity. While outward FDI has impacted the industry's productivity growth it has not decreased the industry's output growth or its share of domestic GDP.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Asian Economics.

Volume (Year): 21 (2010)
Issue (Month): 4 (August)
Pages: 365-377

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Handle: RePEc:eee:asieco:v:21:y:2010:i:4:p:365-377

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Web page: http://www.elsevier.com/locate/asieco

Related research

Keywords: Productivity Competitiveness Malmquist Index Outward FDI Defensive Outward FDI Expansionary Outward FDI;

References

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Cited by:
  1. Irene Fafaliou & Michael Polemis, 2013. "Competitiveness of the Euro Zone Manufacturing: A Panel Data Analysis," International Advances in Economic Research, Springer, vol. 19(1), pages 45-61, February.

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