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An international comparison of the TFP levels and the productivity convergence of Japanese, Korean, Taiwanese and Chinese listed firms

Author

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  • Kyoji Fukao
  • Tomohiko Inui
  • Keiko Ito
  • Young Gak Kim
  • Tangjun Yuan
Abstract
Focusing on Japanese, Korean, Taiwanese, and Chinese firms in the manufacturing sector, this paper examines productivity catch-up at the firm level using the distance from the technology frontier as a direct measure of the potential for catch-up. We also examine the role of absorptive capacity for technological catch-up by including variables such as R&D expenditure and foreign ownership in our empirical estimation. We find that the national frontier has a stronger pull on domestic firms than the regional frontier, which is in line with findings by Bartelsman, Haskel, and Martin (2008). This result indicates that policies to raise the technology level of national frontier firms are beneficial for all firms in that country.

Suggested Citation

  • Kyoji Fukao & Tomohiko Inui & Keiko Ito & Young Gak Kim & Tangjun Yuan, 2011. "An international comparison of the TFP levels and the productivity convergence of Japanese, Korean, Taiwanese and Chinese listed firms," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 9(2), pages 127-150.
    • Handle: RePEc:taf:jocebs:v:9:y:2011:i:2:p:127-150
    DOI: 10.1080/14765284.2011.568683
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    Cited by:

    1. Bellone, Flora & Kiyota, Kozo & Matsuura, Toshiyuki & Musso, Patrick & Nesta, Lionel, 2014. "International productivity gaps and the export status of firms: Evidence from France and Japan," European Economic Review, Elsevier, vol. 70(C), pages 56-74.
    2. Kozo Kiyota & Toshiyuki Matsuura & Lionel Nesta, 2019. "What'S Behind The Figures? Quantifying The Cross‐Country Exporter Productivity Gap," Economic Inquiry, Western Economic Association International, vol. 57(3), pages 1256-1271, July.
    3. Kılınç, Umut, 2014. "Estimating entrants' productivity when prices are unobserved," Economic Modelling, Elsevier, vol. 38(C), pages 640-647.
    4. INUI Tomohiko & ITO Keiko & MIYAKAWA Daisuke, 2014. "Lender Banks' Provision of Overseas Market Information: Evidence from Japanese small and medium-sized enterprises' export dynamics," Discussion papers 14064, Research Institute of Economy, Trade and Industry (RIETI).
    5. Nigel Driffield & Jun Du & Jan Godsell & Mark Hart & Katiuscia Lavoratori & Steven Roper & Irina Surdu & Wanrong Zhang, 2021. "Understanding productivity:Organisational Capital perspectives," Working Papers 013, The Productivity Institute.
    6. KIYOTA Kozo & MATSUURA Toshiyuki & Lionel NESTA, 2016. "Understanding the Cross-country Productivity Gap of Exporters," Discussion papers 16019, Research Institute of Economy, Trade and Industry (RIETI).
    7. Kuo-I Chang & Kazunobu Hayakawa & Toshiyuki Matsuura, 2014. "Location choice of multinational enterprises in China: Comparison between Japan and Taiwan," Papers in Regional Science, Wiley Blackwell, vol. 93(3), pages 521-537, August.
    8. INUI Tomohiko & ITO Keiko & MIYAKAWA Daisuke & SHOJI Keishi, 2013. "Firms' Export Behavior and the Role of Bank' Overseas Information," ESRI Discussion paper series 297, Economic and Social Research Institute (ESRI).
    9. Min, Byung S. & Smyth, Russell, 2014. "Corporate governance, globalization and firm productivity," Journal of World Business, Elsevier, vol. 49(3), pages 372-385.
    10. Chih-Chin Ho & Hui-Lin Lin & Chih-Hai Yang & Ya-Pin Lyu, 2017. "Productivity Catch-up Between Chinese and Taiwanese Electronics Firms," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 533-553, October.
    11. Lai, Yung-Lung & Lin, Feng-Jyh & Lin, Yi-Hsin, 2015. "Factors affecting firm's R&D investment decisions," Journal of Business Research, Elsevier, vol. 68(4), pages 840-844.
    12. repec:hal:spmain:info:hdl:2441/6pua9o9a7l90jbmsrrjb1577vb is not listed on IDEAS
    13. Jian Xu & Jae-Woo Sim, 2018. "Characteristics of Corporate R&D Investment in Emerging Markets: Evidence from Manufacturing Industry in China and South Korea," Sustainability, MDPI, vol. 10(9), pages 1-18, August.
    14. MIYAKAWA Daisuke & TAKIZAWA Miho, 2013. "Performance of Newly Listed Firms: Evidence from Japanese firm and venture capital data," Discussion papers 13019, Research Institute of Economy, Trade and Industry (RIETI).
    15. Tomohiko Inui & Keiko Ito & Daisuke Miyakawa, . "Japanese Small and Medium-Sized Enterprises’ Export Decisions: The Role of Overseas Market Information," Chapters, in: Chin Hee Hahn & Dionisius A. Narjoko (ed.), Globalization and Performance of Small and Large Firms, chapter 2, pages II-1 - II, Economic Research Institute for ASEAN and East Asia (ERIA).
    16. repec:spo:wpmain:info:hdl:2441/6pua9o9a7l90jbmsrrjb1577vb is not listed on IDEAS
    17. Tomohiko Inui, 2015. "Comment on “Escaping the Middle-Income Trap in Southeast Asia: Micro Evidence on Innovation, Productivity, and Globalization”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 150-151, January.
    18. Tomoyuki Iida & Kanako Shoji & Shunichi Yoneyama, 2018. "What Drives China's Growth? Evidence from Micro-level Data," Bank of Japan Working Paper Series 18-E-19, Bank of Japan.
    19. YoungGak KIM & ITO Keiko, 2013. "R&D Investment and Productivity: A comparative study of Japanese and Korean firms," Discussion papers 13043, Research Institute of Economy, Trade and Industry (RIETI).
    20. Kilinc, U., 2010. "Price-cost markups and productivity dynamics of entrant plants," Serie Research Memoranda 0011, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    21. Hayakawa, Kazunobu & Tanaka, Kiyoyasu, 2011. "Export platform FDI and firm heterogeneity," IDE Discussion Papers 310, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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