Comparing technical efficiency between import-substitution-oriented and export-oriented foreign firms in a developing economy |
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| Institution: | 1. Laboratory of Environmental Sciences and Technology, The Xinjiang Technical Institute of Physics and Chemistry, Key Laboratory of Functional Materials and Devices for Special Environments, Chinese Academy of Sciences, Urumqi 830011, China;2. Xinjiang Key Laboratory of Electronic Information Materials and Devices, 40-1 South Beijing Road, Urumqi 830011, China;3. CAS Key Laboratory of Functional Materials and Devices for Special Environments, Xinjiang Technical Institute of Physics and Chemistry, CAS, 40-1 South Beijing Road, Urumqi 830011, China;1. Department of Gastroenterology, The First Affiliated Hospital of Nanchang University, Nanchang, People''s Republic of China;2. Department of Neurology, The Second Affiliated Hospital of Nanchang University, Guangzhou, People''s Republic of China;3. Department of Oncology, The Second Affiliated Hospital of Nanchang University, Nanchang, People''s Republic of China;1. Department of Statistics and Operational Research, University of Jaén, Jaén, Spain;2. Department of Statistics and Operational Research, University of Granada, Granada, Spain;1. School of Materials Science and Engineering, Tianjin University of Technology, Tianjin 300384, China;2. Key Laboratory of Advanced Ceramics and Machining Technology of Ministry of Education, School of Materials Science and Engineering of Tianjin University, Tianjin 300072, China;1. Faculty of Business and Law, Deakin University, Geelong, Australia;2. Faculty of Business, Bond University, Gold Coast 4229, Australia |
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| Abstract: | This paper investigates the relative technical efficiency of firms operating under different competitive pressures. Using observations from multational firms in Taiwan's electronics industry, we find that firms are constrained to export all their products and thus to compete in the world markets (namely, the export-oriented) tend to be more efficient than those allowed to sell their products in the protected local markets (namely, the import-substitution-oriented). Depending on the model specification, the export-oriented firms are 6% to 11% closer to the production frontier than the import-substitution-oriented firms. |
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