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Technology, Exports And Firm Efficiency In Taiwanese Manufacturing

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  • Bee Yan Aw
  • Geeta Batra
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    Abstract

    Using firm-level data from the 1986 Census of Manufactures of Taiwan, we examine the links between technical efficiency and firm investments in technology and exports. Stochastic production frontier techniques are used to estimate the technical efficiency of firms by investments in technology as well as by export orientation. Our results indicate that accounting for firm investments in technology is critical in explaining the strong export-productivity link in the extant literature. For the group of large, high technology firms, the differences in the mean efficiencies between exporters and non-exporters are not significantly different than zero in all nine industries under study. However, for the large number of small firms that make no formal investments in technology. exporters are significantly closer to the production frontier than their counterparts that sell in the domestic market.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

    Volume (Year): 7 (1998)
    Issue (Month): 2 ()
    Pages: 93-113

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    Handle: RePEc:taf:ecinnt:v:7:y:1998:i:2:p:93-113

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    Related research

    Keywords: Technical efficiency; Exports; R&D;

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    Cited by:
    1. Cassiman, Bruno & Golovko, Elena, 2009. "Productivity of Catalan firms. International exposure and (product) innovation," IESE Research Papers, IESE Business School D/808, IESE Business School.
    2. Chin Hee Hahn, 2004. "Exporting and Performance of Plants: Evidence from Korean Manufacturing," NBER Working Papers 10208, National Bureau of Economic Research, Inc.
    3. Bee Yan Aw & Sukkyun Chung & Mark J. Roberts, 1998. "Productivity and the Decision to Export: Micro Evidence from Taiwan and South Korea," NBER Working Papers 6558, National Bureau of Economic Research, Inc.
    4. Cassiman, Bruno & Golovko, Elena, 2007. "Innovation and the export-productivity link," IESE Research Papers, IESE Business School D/688, IESE Business School.
    5. Chang, Chia-Lin & Robin, Stéphane, 2010. "Knowledge sourcing and firm performance in an industrializing economy: The case of Taiwan (1992-2003)," MPRA Paper 27913, University Library of Munich, Germany.

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