PUBLICATIONS & REPORTS

PUBLICATIONS & REPORTS

Catching-up Process of Taiwan’s Electronic Components Industry: A Frontier Analysis

Author Wang Wen-Thuen
Date of Publication 2002. 12
No. 2002-30
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Contents Introduction

Due to ownership advantages, the performance of foreign firms is generally better than local firms in the host market. However, this study empirically found that foreign firms in Taiwan’s electronic components industry achieved relatively lower productivity efficiency during 1986-1996, when Taiwan’s economy was liberalized. Putting extra efforts into improving technical efficiency, local firms gained higher technical efficiency and TFP growth, and this led to the conclusion that there was a trend towards a narrowing of the productivity gap between local firms and foreign firms.