Technological catching-up between two ASEAN members and China: A metafrontier approach

Chung-Yueh Chiu, Chang-Ching Lin and Chih-Hai Yang

China Economic Review, 2019, vol. 54, issue C, 12-25

Abstract: This paper examines the dynamics of the productivity gaps across Indonesia, Vietnam, and China. Based on establishment-level panel datasets in the textile and electronics industries for the period 2000–2007, empirical results obtained from the meta-frontier approach show that there is a technological falling-behind rather than catching-up between Indonesia and China, as well as between Vietnam and China. This widening gap is witnessed in both the labor-intensive textile industry and the capital-intensive electronics industry, because China has experienced faster productivity growth and has upgraded its technological frontier after joining the World Trade Organization (WTO) in 2001. A comparison of the two latecomers finds that Indonesia firms exhibit better productivity performance than do Vietnamese firms.

Keywords: Productivity; Metafrontier; Catch-up; ASEAN; China (search for similar items in EconPapers)
JEL-codes: D23 O12 O33 O57 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:54:y:2019:i:c:p:12-25

DOI: 10.1016/j.chieco.2018.09.012

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