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Technological catching-up between two ASEAN members and China: A metafrontier approach

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  • Chiu, Chung-Yueh
  • Lin, Chang-Ching
  • Yang, Chih-Hai

Abstract

This paper examines the dynamics of the productivity gaps across Indonesia, Vietnam, and China. Based on establishment-level panel datasets in the textile and electronics industries for the period 2000–2007, empirical results obtained from the meta-frontier approach show that there is a technological falling-behind rather than catching-up between Indonesia and China, as well as between Vietnam and China. This widening gap is witnessed in both the labor-intensive textile industry and the capital-intensive electronics industry, because China has experienced faster productivity growth and has upgraded its technological frontier after joining the World Trade Organization (WTO) in 2001. A comparison of the two latecomers finds that Indonesia firms exhibit better productivity performance than do Vietnamese firms.

Suggested Citation

  • Chiu, Chung-Yueh & Lin, Chang-Ching & Yang, Chih-Hai, 2019. "Technological catching-up between two ASEAN members and China: A metafrontier approach," China Economic Review, Elsevier, vol. 54(C), pages 12-25.
    • Handle: RePEc:eee:chieco:v:54:y:2019:i:c:p:12-25
    DOI: 10.1016/j.chieco.2018.09.012
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    Cited by:

    1. Gong, Binlei, 2020. "Agricultural productivity convergence in China," China Economic Review, Elsevier, vol. 60(C).

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    More about this item

    Keywords

    Productivity; Metafrontier; Catch-up; ASEAN; China;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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