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Industrial Diversification and Its Impact on Productivity Growth in Taiwan's Electronics Industry

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  • Show‐Ling Jang
  • Ming‐Hung Weng
  • Yanzhi Wang

Abstract

The present study attempts to link plant‐level production diversification to productivity growth in Taiwan's electronics industry. An account of the role of the Taiwanese government over the last 2 decades leading to the take‐off of its electronics industry is briefly discussed. We reviewed production activities of more than 20 000 Taiwanese electronics plants during the period 1992–1999. In an inter‐industry comparison, we find that at the four‐digit and seven‐digit industry levels, Taiwanese electronics production plants exhibit a significantly higher degree of product diversification than plants in the manufacturing sector as a whole. Econometric results positively identify diversification as a source of significant productivity growth across all electronics plants classified in the related industry groups.

Suggested Citation

  • Show‐Ling Jang & Ming‐Hung Weng & Yanzhi Wang, 2005. "Industrial Diversification and Its Impact on Productivity Growth in Taiwan's Electronics Industry," Asian Economic Journal, East Asian Economic Association, vol. 19(4), pages 423-443, December.
    • Handle: RePEc:bla:asiaec:v:19:y:2005:i:4:p:423-443
    DOI: 10.1111/j.1467-8381.2005.00220.x
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