Trade Liberalization and Production Efficiency: Evidence from AFTA

碩士 === 南華大學 === 管理經濟學系經濟學碩士班 === 97 ===   In recent years, due to the slow progress of multilateral trade liberalization, the countries signed a bilateral free trade agreement (FTA) to increase its international competitiveness. Due to complicated political situation cross-strait, however, Taiwan�...

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Bibliographic Details
Main Authors: Ya-chuen Lin, 林雅淳
Other Authors: Chia-ching Lin
Format: Others
Language:zh-TW
Published: 2009
Online Access:http://ndltd.ncl.edu.tw/handle/15609655434361777491
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Summary:碩士 === 南華大學 === 管理經濟學系經濟學碩士班 === 97 ===   In recent years, due to the slow progress of multilateral trade liberalization, the countries signed a bilateral free trade agreement (FTA) to increase its international competitiveness. Due to complicated political situation cross-strait, however, Taiwan''s government is difficult to make a huge breakthrough in the international negotiation. Also the doubt that Taiwan would become marginalized. According to previous literature, most of papers focused on the effect of FTA on the trade, GDP growth rate, social welfare and so on. The view of point on production efficiency is largely ignored. At present, more and more research put the emphasis on production efficiency.     In this paper, we takes the ASEAN Free Trade Area (AFTA) of the subject for the study. We takes the AFTA countries (Thailand, Malaysia, Philippines and Indonesia) as well as non-AFTA countries (China, Japan, South Korea and Taiwan) as objects of research. We use the stochastic frontier approach (SFA), along with a translog model, to build up a stochastic frontier and to set up an inefficiency form. The results of this study show that under trade liberalization would cause the openness of the Philippines, Indonesia, China and Japan decreased productivity; Taiwan increase production efficiency. An increasing in the percentage of one country''s trade with AFTA in its total trade leads to decrease production efficiency in Malaysia (within AFTA) and Taiwan (non-AFTA). CEPT implementation has positive impact on production efficiency for China and Japan, but has negative impact for Taiwan. Furthermore, to consider Taiwan''s the proportion of foreign direct investment in AFTA, the results showed that the higher the proportion is, the lower the technical efficiency in Taiwan will be.