The Impacts of Outward FDI on the Productivity of Taiwan''s Manufacturing Sector

• Main Authors: You-Chang Chen, 陳右昌
• Other Authors: Ling Sun
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/67032114282184957045

碩士 === 靜宜大學 === 會計學系研究所 === 93 === The purpose of this study is to discuss the impact of outward foreign direct investment (outward FDI) on the productivity of Taiwan’s Manufacturing Sector. Our sample includes 15 industries over the time period 1991-2003. To measure the Taiwanese industrial productivity change we first construct the Malmquist index underlying a DEA approach. The Malmquist index can be decomposed into technical change and efficiency change indices. Under the assumption of variable returns to scale the efficiency change index can be further decomposed into pure efficiency change and scale efficiency indices. Our econometric estimation is based on a pooled time series/cross-section data set with fixed effect model. The results can be concluded as follows: 1. According to the Malmquist indices, all of the average productivity, average technical efficiency as well as the average scale efficiency of 15 industries are deteriorated within the period of 1992 to 2001. However, the average technical change index presents a technological progress for the 15 industries within the sample period. 2. Outward FDI has significant negative influence on industrial GDP growth, TFP change and technical change for. 3. If we separate outward FDI into the expansionary FDI and defensive FDI, the results indicate that the defense FDI will hinder the productivity growth and the expansionary FDI will deteriorate the pure technical efficiency change. 4. If outward FDI is distinguished into FDI in Mainland China and FDI in other countries, the results indicate that FDI in Mainland China will hold back the industrial productivity change. On the other hand, FDI in other countries will make positive contribution to the industrial technical change.