A Comparative Study on X-Inefficiency Between Korea and Taiwan

Myung Hun Kang and Woo-Taik Chung
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Myung Hun Kang: Dankook University
Woo-Taik Chung: Dankook University

Korean Economic Review, 1998, vol. 14, 5-22

Abstract: This study applies the I-inefficiency theory to analyze different characteris-tics of the industrial structure between Korea and Taiwan, who have achieved rapid economic growth and export expansion during the past three decades. We measure the X- inefficiency rates of the manufaturing sectors and test the competitive environment hypothesis that the industry in a less competitive envi-ronment has more I-inefficiency. Even though there are somewhat distinctive results due to the different industrial structure the test results imply that un-competitive industries tend to have greater X- inefficiency.

Keywords: X-Inefficiency; Manufacturing Sector; Korea; Taiwan (search for similar items in EconPapers)
JEL-codes: L6 (search for similar items in EconPapers)
Date: 1998
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