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A Comparative Study on X-Inefficiency Between Korea and Taiwan

Author

Listed:
  • Myung Hun Kang

    (Dankook University)

  • Woo-Taik Chung

    (Dankook University)

Abstract

This study applies the I-inefficiency theory to analyze different characteris-tics of the industrial structure between Korea and Taiwan, who have achieved rapid economic growth and export expansion during the past three decades. We measure the X- inefficiency rates of the manufaturing sectors and test the competitive environment hypothesis that the industry in a less competitive envi-ronment has more I-inefficiency. Even though there are somewhat distinctive results due to the different industrial structure the test results imply that un-competitive industries tend to have greater X- inefficiency.

Suggested Citation

  • Myung Hun Kang & Woo-Taik Chung, 1998. "A Comparative Study on X-Inefficiency Between Korea and Taiwan," Korean Economic Review, Korean Economic Association, vol. 14, pages 5-22.
    • Handle: RePEc:kea:keappr:ker-199806-14-1-01
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    More about this item

    Keywords

    X-Inefficiency; Manufacturing Sector; Korea; Taiwan;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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