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Legal Environments, Venture Capital, And Total Factor Productivity Growth Of Taiwanese Industry

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  • MENG‐CHI TANG
  • YIH‐LUAN CHYI

Abstract

This study provides a new explanation of total factor productivity growth of Taiwanese industry. Besides the channels identified in the literature, this study finds that the venture capital (VC) industry development significantly promotes productivity growth. In addition, an indicator of legal environment has been established to record changes in VC‐related legislation during the past two decades in Taiwan. The legal indicator serves as an instrumental variable that can avoid estimation bias resulting from potential endogeneity between VC development and productivity growth. (JEL G24, K23, O47).

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  • Meng‐Chi Tang & Yih‐Luan Chyi, 2008. "Legal Environments, Venture Capital, And Total Factor Productivity Growth Of Taiwanese Industry," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 468-481, July.
    • Handle: RePEc:bla:coecpo:v:26:y:2008:i:3:p:468-481
    DOI: 10.1111/j.1465-7287.2008.00105.x
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    Cited by:

    1. Ueda, Masako & Hirukawa, Masayuki, 2008. "Venture Capital and Industrial ''Innovation''," CEPR Discussion Papers 7089, C.E.P.R. Discussion Papers.
    2. Liaoliao Duan & Dongxiao Niu & Weizeng Sun & Siqi Zheng, 2021. "Transportation infrastructure and capital mobility: evidence from China’s high-speed railways," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(3), pages 617-648, December.
    3. Wen, Jun & Yang, Di & Feng, Gen-Fu & Dong, Minyi & Chang, Chun-Ping, 2018. "Venture capital and innovation in China: The non-linear evidence," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 148-162.
    4. Popov, Alexander & Roosenboom, Peter, 2013. "Venture capital and new business creation," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 4695-4710.
    5. Jun Wen & Xiu-Yun Yang & Gen-Fu Feng & Bo Sui & Chun-Ping Chang, 2017. "The comovement between venture capital and innovation in China: what are the implications?," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(6), pages 2489-2506, November.
    6. Popov, Alexander & Roosenboom, Peter, 2009. "On the real effects of private equity investment: evidence from new business creation," Working Paper Series 1078, European Central Bank.

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    More about this item

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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