IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

E-commerce, R&D, and productivity: Firm-level evidence from Taiwan

Listed author(s):
  • Liu, Ting-Kun
  • Chen, Jong-Rong
  • Huang, Cliff C.J.
  • Yang, Chih-Hai
Registered author(s):

    This study investigates the impact of e-commerce and R&D on productivity, using a unique panel dataset obtained from Taiwanese manufacturing firms for the period from 1999 to 2002. We specifically consider the network externalities of e-commerce and employ the system generalized method of moment (GMM) technique to deal with the endogenous problem of e-commerce adoption. The empirical results show that both e-commerce and R&D capital have a positive influence on productivity, while R&D exhibits a larger productivity-enhancing effect. We also find a complementary relationship between e-commerce and R&D on enhancing productivity. Crucially, the inter-industry network externality of e-commerce significantly contributes to productivity.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/S0167624513000309
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Information Economics and Policy.

    Volume (Year): 25 (2013)
    Issue (Month): 4 ()
    Pages: 272-283

    as
    in new window

    Handle: RePEc:eee:iepoli:v:25:y:2013:i:4:p:272-283
    DOI: 10.1016/j.infoecopol.2013.07.001
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505549

    References listed on IDEAS
    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.:

    as
    in new window


    1. Petri Rouvinen, 2002. "The existence of R&D spillovers: A cost function estimation with random coefficients," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 525-541.
    2. Irene Bertschek & Helmut Fryges & Ulrich Kaiser, 2006. "B2B or Not to Be: Does B2B E-Commerce Increase Labour Productivity?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(3), pages 387-405.
    3. Shin-Horng Chen, 2002. "Global Production Networks and Information Technology: The Case of Taiwan," Industry and Innovation, Taylor & Francis Journals, vol. 9(3), pages 249-265.
    4. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    5. Stephen D. Oliner & Daniel E. Sichel, 2000. "The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 3-22, Fall.
    6. Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
    7. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    8. Bonte, Werner, 2004. "Spillovers from publicly financed business R&D: some empirical evidence from Germany," Research Policy, Elsevier, vol. 33(10), pages 1635-1655, December.
    9. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 483-498, Winter.
    10. Madden, Gary & Savage, Scott J., 2000. "R&D spillovers, information technology and telecommunications, and productivity in ASIA and the OECD," Information Economics and Policy, Elsevier, vol. 12(4), pages 367-392, December.
    11. Jha, Raghbendra & Majumdar, Sumit K., 1999. "A matter of connections: OECD telecommunications sector productivity and the role of cellular technology diffusion," Information Economics and Policy, Elsevier, vol. 11(3), pages 243-269, September.
    12. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
    13. Madden, Gary & Coble-Neal, Grant, 2002. "Internet Economics and Policy: An Australian Perspective," The Economic Record, The Economic Society of Australia, vol. 78(242), pages 343-357, September.
    14. Luis Garicano & Steven N. Kaplan, 2001. "The Effects of Business-to-Business E-Commerce on Transaction Costs," NBER Chapters,in: E-commerce, pages 463-485 National Bureau of Economic Research, Inc.
    15. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    16. Severin Borenstein & Garth Saloner, 2001. "Economics and Electronic Commerce," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 3-12, Winter.
    17. Beise, Marian & Stahl, Harald, 1999. "Public research and industrial innovations in Germany," Research Policy, Elsevier, vol. 28(4), pages 397-422, April.
    18. Chen, Shin-Horng, 2004. "Taiwanese IT firms' offshore R&D in China and the connection with the global innovation network," Research Policy, Elsevier, vol. 33(2), pages 337-349, March.
    19. Jeffrey I. Bernstein, 1988. "Costs of Production, Intra- and Interindustry R&D Spillovers: Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 21(2), pages 324-347, May.
    20. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 321-340.
    21. Harald Badinger & Werner Muller & Gabriele Tondl, 2004. "Regional Convergence in the European Union, 1985- 1999: A Spatial Dynamic Panel Analysis," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 241-253.
    22. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    23. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
    24. Jong-Rong Chen & Chih-Hai Yang, 2005. "Technological knowledge, spillover and productivity: evidence from Taiwanese firm level panel data," Applied Economics, Taylor & Francis Journals, vol. 37(20), pages 2361-2371.
    25. Engelbrecht, Hans-Jurgen & Xayavong, Vilaphonh, 2006. "ICT intensity and New Zealand's productivity malaise: Is the glass half empty or half full?," Information Economics and Policy, Elsevier, vol. 18(1), pages 24-42, March.
    26. Carlsson, Bo, 1997. "On and off the beaten path: The evolution of four technological systems in Sweden," International Journal of Industrial Organization, Elsevier, vol. 15(6), pages 775-799, October.
    27. Barbara M. Fraumeni, 2001. "E-Commerce: Measurement and Measurement Issues," American Economic Review, American Economic Association, vol. 91(2), pages 318-322, May.
    28. Philippe Cuneo & Jacques Mairesse, 1984. "Productivity and R&D at the Firm Level in French Manufacturing," NBER Chapters,in: R&D, Patents, and Productivity, pages 375-392 National Bureau of Economic Research, Inc.
    29. David Lucking-Reiley & Daniel F. Spulber, 2001. "Business-to-Business Electronic Commerce," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 55-68, Winter.
    30. Sung-Bae Mun & M. Ishaq Nadiri, 2002. "Information Technology Externalities: Empirical Evidence from 42 U.S. Industries," NBER Working Papers 9272, National Bureau of Economic Research, Inc.
    31. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    32. Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August.
    33. Robert E. Litan & Alice M. Rivlin, 2001. "Projecting the Economic Impact of the Internet," American Economic Review, American Economic Association, vol. 91(2), pages 313-317, May.
    34. Mun, S-B. & Nadiri, M.I., 2002. "Information Technology Externalities: Empirical Evidence from 42 U.S. Industries," Working Papers 02-03, C.V. Starr Center for Applied Economics, New York University.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:25:y:2013:i:4:p:272-283. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.