Taiwanese industry competitiveness when outward FDI is defensive

Ling Sun, Lilyan Fulginiti and Yo-Chan Chen
Authors registered in the RePEc Author Service: Sun Ling Wang

Journal of Asian Economics, 2010, vol. 21, issue 4, 365-377

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.

Keywords: Productivity; Competitiveness; Malmquist; Index; Outward; FDI; Defensive; Outward; FDI; Expansionary; Outward; FDI (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:21:y:2010:i:4:p:365-377

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