Market dynamics and dichotomy: evidence from Taiwanese manufacturing

Mita Bhattacharya and Jong-Rong Chen ()

Applied Economics, 2009, vol. 41, issue 17, 2169-2179

Abstract: In Taiwan, a dichotomous market structure is closely related to the progress of economic development. The purpose of the present article is to examine the market dynamics and dichotomous nature of Taiwanese manufacturing. A model of dynamic adjustment of industry structure is considered when both the speed of adjustment and the long-run market concentration are allowed to vary across industries. We use 118 four-digit manufacturing industries for empirical analysis of our models spanning between 1981 and 1991. Empirical findings show that both the speed of adjustment and long-run industry concentration are predominantly determined by minimum efficient scale. The speed of adjustment is much faster in a small open economy like Taiwan compared to mature economies like the US and Australia. In addition, the dichotomous nature of the market is supported in our findings for both periods, viz, 1981-1986 and 1986-1991, albeit weaker for the later period.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00036840701222470 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:41:y:2009:i:17:p:2169-2179

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036840701222470

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().