PRODUCTIVITY IN TAIWANESE MANUFACTURING-INDUSTRIES

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