Taiwanese industry competitiveness when outward FDI is defensive

Ling Sun, Lilyan E. Fulginiti, Yo Chan Chen

Research output: Contribution to journalArticlepeer-review

6 Scopus citations


The main purpose of this study is to examine the links between outward FDI and the competitiveness of Taiwanese industries. This is done by emphasizing the difference between 'defensive' versus 'expansionary' outward FDI. The empirical study is based on a panel data of 15 industries over the period 1991-2001. The results indicate that outward FDI of the defensive type, in particular that destined to China, while increasing industry efficiency has had a significant negative influence on competitiveness of the Taiwanese industry through its effects on innovative activity. While outward FDI has impacted the industry's productivity growth it has not decreased the industry's output growth or its share of domestic GDP.

Original languageEnglish (US)
Pages (from-to)365-377
Number of pages13
JournalJournal of Asian Economics
Issue number4
StatePublished - Aug 2010


  • Competitiveness
  • Defensive Outward FDI
  • Expansionary Outward FDI
  • Malmquist Index
  • Outward FDI
  • Productivity

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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