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Industrial Diversification and Its Impact on Productivity Growth in Taiwan's Electronics Industry

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  • Show-Ling Jang
  • Ming-Hung Weng
  • Yanzhi Wang

Abstract

The present study attempts to link plant-level production diversification to productivity growth in Taiwan's electronics industry. An account of the role of the Taiwanese government over the last 2 decades leading to the take-off of its electronics industry is briefly discussed. We reviewed production activities of more than 20 000 Taiwanese electronics plants during the period 1992-1999. In an inter-industry comparison, we find that at the four-digit and seven-digit industry levels, Taiwanese electronics production plants exhibit a significantly higher degree of product diversification than plants in the manufacturing sector as a whole. Econometric results positively identify diversification as a source of significant productivity growth across all electronics plants classified in the related industry groups. Copyright 2005 East Asian Economic Association.

Suggested Citation

  • Show-Ling Jang & Ming-Hung Weng & Yanzhi Wang, 2005. "Industrial Diversification and Its Impact on Productivity Growth in Taiwan's Electronics Industry ," Asian Economic Journal, East Asian Economic Association, vol. 19(4), pages 423-443, December.
  • Handle: RePEc:bla:asiaec:v:19:y:2005:i:4:p:423-443
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