Productivity in Taiwanese manufucturing industries

This study decomposes the Malmquist productivity change index into technical change and technical efficiency change for Taiwanese manufacturing industries. The results obtained indicate that total factor productivity (TFP) growth in the long run is dominated by technical change, that technical change and efficiency change do not always move together, and that R&D activity benefits technical progress. It also compares our productivity estimates with those of Lee's (1991) parametric approach.