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E-commerce, R&D, and productivity: Firm-level evidence from Taiwan

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  • Liu, Ting-Kun
  • Chen, Jong-Rong
  • Huang, Cliff C.J.
  • Yang, Chih-Hai
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    Abstract

    This study investigates the impact of e-commerce and R&D on productivity, using a unique panel dataset obtained from Taiwanese manufacturing firms for the period from 1999 to 2002. We specifically consider the network externalities of e-commerce and employ the system generalized method of moment (GMM) technique to deal with the endogenous problem of e-commerce adoption. The empirical results show that both e-commerce and R&D capital have a positive influence on productivity, while R&D exhibits a larger productivity-enhancing effect. We also find a complementary relationship between e-commerce and R&D on enhancing productivity. Crucially, the inter-industry network externality of e-commerce significantly contributes to productivity.

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    Bibliographic Info

    Article provided by Elsevier in its journal Information Economics and Policy.

    Volume (Year): 25 (2013)
    Issue (Month): 4 ()
    Pages: 272-283

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    Handle: RePEc:eee:iepoli:v:25:y:2013:i:4:p:272-283

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    Web page: http://www.elsevier.com/locate/inca/505549

    Related research

    Keywords: Productivity; R&D spillovers; E-commerce; Network externalities;

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    References

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