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

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  • Liu, Ting-Kun
  • Chen, Jong-Rong
  • Huang, Cliff C.J.
  • Yang, Chih-Hai

Abstract

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.

Suggested Citation

  • Liu, Ting-Kun & Chen, Jong-Rong & Huang, Cliff C.J. & Yang, Chih-Hai, 2013. "E-commerce, R&D, and productivity: Firm-level evidence from Taiwan," Information Economics and Policy, Elsevier, vol. 25(4), pages 272-283.
    • Handle: RePEc:eee:iepoli:v:25:y:2013:i:4:p:272-283
    DOI: 10.1016/j.infoecopol.2013.07.001
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    More about this item

    Keywords

    Productivity; R&D spillovers; E-commerce; Network externalities;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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