Productivity and FDI of Taiwan Firms: A review from a nonparametric approach
AbstractThis paper examines whether firms' productivity and the attributes of foreign direct investment (FDI) destinations affect both the choice of these destination as well as the accumulated number. The results of our examination, using firm-level data of Taiwan, present new evidence: (i) the productivity of firms conducting FDI in high-wage countries is higher than that in low-wage countries, but is not higher than the productivity of non-FDI firms; and (ii) the higher the productivity, the larger the number of FDI destinations regardless of the market attributes. These results provide the policy implication that government support for raising the productivity and lowering the cost of internationalization will accelerate the internationalization of Taiwan firms and eventually enhance economic growth in Taiwan.
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Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 12033.
Length: 29 pages
Date of creation: May 2012
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-29 (All new papers)
- NEP-EFF-2012-05-29 (Efficiency & Productivity)
- NEP-INT-2012-05-29 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tomiura, Eiichi, 2007.
"Foreign outsourcing, exporting, and FDI: A productivity comparison at the firm level,"
Journal of International Economics,
Elsevier, vol. 72(1), pages 113-127, May.
- Eiichi Tomiura, 2005. "Foreign Outsourcing, Exporting, and FDI: A Productivity Comparison at the Firm Level," Discussion Paper Series 168, Research Institute for Economics & Business Administration, Kobe University.
- WAKASUGI Ryuhei & TODO Yasuyuki & SATO Hitoshi & NISHIOKA Shuichiro & MATSUURA Toshiyuki & ITO Banri & TANAKA Ayumu, 2008. "The Internationalization of Japanese Firms: New Findings Based on Firm-Level Data," Discussion papers 08036, Research Institute of Economy, Trade and Industry (RIETI).
- Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, vol. 57(2), pages 397-422, August.
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