Taiwanese industry competitiveness when outward FDI is defensive

Ling Sun; Lilyan E. Fulginiti; Yo Chan Chen

doi:10.1016/j.asieco.2010.02.001

Taiwanese industry competitiveness when outward FDI is defensive

Ling Sun, Lilyan E. Fulginiti, Yo Chan Chen

Daugherty Water for Food Global Institute

Research output: Contribution to journal › Article › peer-review

4 Scopus citations

Abstract

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 language	English (US)
Pages (from-to)	365-377
Number of pages	13
Journal	Journal of Asian Economics
Volume	21
Issue number	4
DOIs	https://doi.org/10.1016/j.asieco.2010.02.001
State	Published - Aug 2010

Keywords

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

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.asieco.2010.02.001

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abstract = "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.",

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KW - Malmquist Index

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KW - Productivity

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Taiwanese industry competitiveness when outward FDI is defensive

Abstract

Keywords

ASJC Scopus subject areas

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