The Impact of Outward Foreign Direct Investment on Productivity and Output-An Empirical Study of Manufacturing Industry in Taiwan

• Main Authors: HSIEH, YI-TING, 謝依婷
• Other Authors: HSU, FANG-HSIA
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/05577111440045731749

碩士 === 國立臺北大學 === 經濟學系 === 94 === Since middle period of 1980 times, the investments abroad of Taiwan’s manufacturing sector has been gradually increased. Such as the electron and electric equipment products industry, its output accounts for GDP proportion is up to 9.34% in 2004. However, the proportions of some industry outputs to GDP are declining constantly, such as the textile & clothing industry. Do outward FDI cause different influence on different kinds of industries? The purpose of this study is to discuss the impact of outward foreign direct investment (outward FDI) on the productivity of Taiwan’s Manufacturing Sector. Our sample includes 14 industries over the time period 1993-2004. We separate outward FDI into the expansionary FDI and defensive FDI and the classification of industry is based on high-skilled and low-skilled workers and ratio of goods for export. Our econometric estimation is based on a pooled time series/cross-section data set with fixed effect model. The important empirical results obtained from this study are as follows: 1. Outward FDI has negative influence to labor productivity, but it will make positive contribution to output GDP proportion. If we separate outward FDI into the expansionary FDI and defensive FDI, the results indicate that the defense FDI will hinder the productivity growth and the expansionary FDI will make positive contribution to the labor productivity and output GDP proportion. 2. Divide manufacturing industry into three kinds of different industry's types, the foreign total investment helps labor productivity increase in intensive industry of the high-tech capital, but negative to the low skill-intensive industry. The impacts on different kinds of industries of investments abroad are different. 3. Take the influence of GDP proportion rate of increase on every industry output, there is no apparent difference after distinguishing the fact different investing type attitudes, but it is different that the investments abroad of different kinds of industries show the influence of taking GDP proportion rate of increase of the output.