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Technology, Exports And Firm Efficiency In Taiwanese Manufacturing


  • Bee Yan Aw
  • Geeta Batra


Using firm-level data from the 1986 Census of Manufactures of Taiwan, we examine the links between technical efficiency and firm investments in technology and exports. Stochastic production frontier techniques are used to estimate the technical efficiency of firms by investments in technology as well as by export orientation. Our results indicate that accounting for firm investments in technology is critical in explaining the strong export-productivity link in the extant literature. For the group of large, high technology firms, the differences in the mean efficiencies between exporters and non-exporters are not significantly different than zero in all nine industries under study. However, for the large number of small firms that make no formal investments in technology. exporters are significantly closer to the production frontier than their counterparts that sell in the domestic market.

Suggested Citation

  • Bee Yan Aw & Geeta Batra, 1998. "Technology, Exports And Firm Efficiency In Taiwanese Manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 93-113.
  • Handle: RePEc:taf:ecinnt:v:7:y:1998:i:2:p:93-113 DOI: 10.1080/10438599800000030

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    References listed on IDEAS

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    Cited by:

    1. Derya Fındık & Aysıt Tansel, 2013. "Intangible investment and Technical efficiency: The case of software-intensive manufacturing firms in Turkey," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 235, Ekonomik Yaklasim Association.
    2. Chia-Lin Chang & Stéphane Robin, 2012. "Knowledge sourcing and firm performance in an industrializing economy: the case of Taiwan (1992–2003)," Empirical Economics, Springer, vol. 42(3), pages 947-986, June.
    3. Chin Hee Hahn, 2004. "Exporting and Performance of Plants: Evidence from Korean Manufacturing," NBER Working Papers 10208, National Bureau of Economic Research, Inc.
    4. Derya Findik & Aysit Tansel, 2015. "​ Intangible Investment and Technical Efficiency: The Case of Software-Intensive Manufacturing Firms in Turkey," Working Papers 2015/11, Turkish Economic Association.
    5. Cassiman, Bruno & Golovko, Elena, 2009. "Productivity of Catalan firms. International exposure and (product) innovation," IESE Research Papers D/808, IESE Business School.
    6. Cassiman, Bruno & Golovko, Elena, 2007. "Innovation and the export-productivity link," IESE Research Papers D/688, IESE Business School.
    7. Bee Yan Aw & Sukkyun Chung & Mark J. Roberts, 1998. "Productivity and the Decision to Export: Micro Evidence from Taiwan and South Korea," NBER Working Papers 6558, National Bureau of Economic Research, Inc.

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    Technical efficiency; Exports; R&D;


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