Productivity and technical change: the case of Taiwan

Rolf G. Färe · Shawna Grosskopf · Wen-Fu Lee

65 citations0/0 files storedApplied Economics

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Efficiency Analysis Using DEA Global trade and economics Economic Growth and Productivity

Abstract

This paper analyses productivity growth in 16 of Taiwan's manufacturing industries during the period 1978–1992. The non-parametric Data Envelopment Analysis approach is used to compute Malmquist productivity indexes. These are decomposed into efficiency change and technical change. The latter is further decomposed into an output bias, an input bias and a magnitude component. In addition, the direction of input bias is identified. Empirical results indicate that the sector's TFP increased at a rate of 2.89% per annum, which could be ascribed to a technical progress (2.56%) and an efficiency improvement (0.33%).

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References

1978Measuring the efficiency of decision making units 1982The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity 2015Theory of Cost and Production Functions 1995The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience 1994The Sources of Economic Growth of the East Asian Newly Industrialized Countries 1997Intertemporal Production Frontiers: With Dynamic DEA.1974The Measurement of Technical Change Biases with Many Factors of Production 1988Fundamentals of Production Theory

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