Lower bounds of concentration in Taiwan's manufacturing industries: do exports matter?
This article aims to test Sutton's 'lower bounds' approach on the analysis of market concentration in a small open economy like Taiwan. Exporting, which is important to a small open economy, is also considered in order to investigate the role of foreign competition on the market structure. Using a stochastic frontier approach, the estimate findings are in accordance with Sutton's predictions, whereby the lower bounds for high advertising and/or R&D-intensive industries are higher than those for low advertising and/or R&D-intensive industries in Taiwan. At the same time, the lower bounds of concentrations for export-intensive industries do not differ significantly from that of nonexport-intensive industries. The deviations from the lower bound are explained by industry characteristics such as the cost disadvantage ratio, the share of small and median-size enterprises, turnover rate and growth rate.
Year of publication: |
2007
|
---|---|
Authors: | Yang, Chih-Hai ; Kuo, Chun-Chien |
Published in: |
Applied Economics. - Taylor & Francis Journals, ISSN 0003-6846. - Vol. 39.2007, 18, p. 2389-2401
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Knowledge capital and spillover on regional economic growth: Evidence from China
Kuo, Chun-Chien, (2008)
-
Knowledge capital and spillover on regional economic growth : evidence from China
Kuo, Chun-chien, (2008)
-
Lower bounds of concentration in Taiwan's manufacturing industries : do exports matter?
Yang, Chih-Hai, (2007)
- More ...