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Legal Environments, Venture Capital, And Total Factor Productivity Growth Of Taiwanese Industry




"This study provides a new explanation of total factor productivity growth of Taiwanese industry. Besides the channels identified in the literature, this study finds that the venture capital (VC) industry development significantly promotes productivity growth. In addition, an indicator of legal environment has been established to record changes in VC-related legislation during the past two decades in Taiwan. The legal indicator serves as an instrumental variable that can avoid estimation bias resulting from potential endogeneity between VC development and productivity growth. "("JEL "G24, K23, O47). Copyright (c) 2008 Western Economic Association International.

Suggested Citation

  • Meng-Chi Tang & Yih-Luan Chyi, 2008. "Legal Environments, Venture Capital, And Total Factor Productivity Growth Of Taiwanese Industry," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 468-481, July.
  • Handle: RePEc:bla:coecpo:v:26:y:2008:i:3:p:468-481

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    References listed on IDEAS

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    18. Susan M. Collins & Barry P. Bosworth, 1996. "Economic Growth in East Asia: Accumulation versus Assimilation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(2), pages 135-204.
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    Cited by:

    1. Popov, Alexander & Roosenboom, Peter, 2009. "On the real effects of private equity investment: evidence from new business creation," Working Paper Series 1078, European Central Bank.
    2. Hirukawa, Masayuki & Ueda, Masako, 2008. "Venture Capital and Industrial ''Innovation''," CEPR Discussion Papers 7089, C.E.P.R. Discussion Papers.
    3. Popov, Alexander & Roosenboom, Peter, 2013. "Venture capital and new business creation," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 4695-4710.
    4. repec:spr:qualqt:v:51:y:2017:i:6:d:10.1007_s11135-016-0405-3 is not listed on IDEAS

    More about this item

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence


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