FDI、Overseas Production and Industrial Upgrading : the Comparison between Traditional Industry and Hi-Tech Industry in Taiwan
Date Issued
2010
Date
2010
Author(s)
Lin, Ming-Zhen
Abstract
In this paper,we use a questionnaire survey of sample data collected by DGBAS to explore the impact of foreign investment and overseas production on the industrial upgrading including productivity growth rate and innovation growth rate between 2001 and 2006. In addition,we further divided firms into traditional industries and high-tech manufacturing industries,and compare the different effects of engaging in foreign investment and overseas production between two industrial firms.
In the empirical study,we use Propensity Score Matching Method (PSM) instead of endogenous switching regression model to analyze foreign investment and overseas production on the effects of productivity growth rate and innovation growth rate. We select Nearest Neighbor Matching, Kernel Matching and Caliper Matching method to do PSM matching.We hope to obtain a more precise result.
The empirical results show that manufacturing firms engage in foreign investment and overseas production can enhance its innovation and productivity growth rate , so manufacturers can indeed promote the productivity growth rate and innovation growth rate by engaging in foreign investment and overseas production.
For the high-tech industry, the conduct of foreign investment can enhance the productivity growth, but not innovation growth rate.However, firms can not improve productivity growth and innovation growth by engaging in overseas production.
In terms of traditional industries,it can not promote the productivity growth by engaging in foreign investment, while there are negative effects on the productivity and innovation growth by engaging in overseas production.
Therefore, the empirical results show that it has a greater impact on innovation and productivity growth rate by engaging in foreign investment than engaging in overseas production, and the impact in high-tech industry is more important than traditional industry .
Subjects
FDI
Overseas production
Productivity
Tfp
Innovation Propensity Score Matching Method
SDGs
Type
thesis
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