Outward foreign direct investment and technical efficiency: Evidence from Taiwan's manufacturing firms
نویسندگان
چکیده
This paper uses firm-level panel data from Taiwan’s manufacturing industries from 1987 to 2000 to investigate the impact of outward foreign direct investment (OFDI) on the technical efficiency of the OFDI firms. Propensity score matching is used to construct an appropriate group of non-OFDI firms to compare with OFDI firms, and a metafrontier framework is subsequently used to calculate comparable technical efficiencies for both groups of firms. Our empirical results reveal that the technical efficiencies of Taiwan’s manufacturing firms were increasing over the entire sample period. In addition, our results suggest that the technological advances and the technical efficiency of Taiwan’s manufacturing firms are positively correlated with their OFDI activity. 2013 Elsevier Inc. All rights reserved. * Corresponding author. Tel.: +886 2 29387515. E-mail addresses: [email protected] (S.-F. Yang), [email protected] (K.-M. Chen), [email protected] (T.-H. Huang). 1 See Chen, Rau, and Lin (2006) and Lin, Chen, and Rau (2010) for recent evidence about the determinants of Taiwan’s outward FDI. 2 Caves (1996) provides a comprehensive survey of earlier literature about the determinants of multinational enterprises and their impacts. Lipsey (2002) and Kokko (2006) are two recent surveys about the home country effects of FDI.
منابع مشابه
The Effect of Outward Foreign Direct Investment on Domestic R&D Spending: A Panel-Data Analysis of Taiwanese Manufacturing Firms
This paper re-examines the impact of a firm’s outward foreign direct investemnt on its R&D spending in the home country with propensity score matching method. Employing firm-level panel data on Taiwan’s manufacturing firms covering 1987-2003, this paper first demonstrates that firms with firm-specific and ownership advantages are more likely to undertake overseas inverstment. Controlling for ou...
متن کاملInward Investment And Technical Progress In The United Kingdom Manufacturing Sector
This paper investigates the impact of inward investment by foreign-owned companies on technical progress and hence labour productivity in the UK manufacturing sector. Using an industry-level panel data set we find that foreign-owned firms have a significant positive effect on the level of technical efficiency in domestic firms. There is evidence of significant intra-industry and inter-industry ...
متن کاملForeign Direct Investment Spillovers and Productivity Growth in Indonesian Garment and Electronics Manufacturing
Inflows of foreign direct investment generate externalities that spill over to domestic firms and raise their productivity. This article examines the extent of spillover effects of foreign direct investment for firms in the highly disaggregated garment (ISIC 3221) and electronics industries (ISIC 3832) in Indonesia. Both are export-intensive industries, but differ greatly in technological sophi...
متن کاملEquity Relationships and Firms ' Internal Wages : Differential
Firms' interfirm relationships such as foreign direct investment (FDI) and domestic vertical equity connections have important implications for workers' wages within the firms. However, little empirical evidence on these wage effects within firms is available in the literature. This paper contributes to the literature by presenting estimates for such wage effects. We estimate the effects on wor...
متن کاملInternationalization of Firms from Emerging Economies: Theory, Evidence and Policy
India and China have emerged as an important source of outward foreign direct investment (OFDI) in the global economy. The increasing presence of their enterprises in the advanced countries has posed a challenge both to theory of internationalization of firms and public policy alike to explain why this has happened. In this paper, an attempt is made to examine, in comparative framework, the tre...
متن کامل