E-commerce, r&d, and productivity: Firm-level evidence from taiwan

Ting Kun Liu, Jong Rong Chen, Cliff C.J. Huang, Chih Hai Yang

Research output: Contribution to journalArticlepeer-review

32 Scopus citations


This study investigates the impact of e-commerce and R&D on productivity, using a unique panel dataset obtained from Taiwanese manufacturing firms for the period from 1999 to 2002. We specifically consider the network externalities of e-commerce and employ the system generalized method of moment (GMM) technique to deal with the endogenous problem of e-commerce adoption. The empirical results show that both e-commerce and R&D capital have a positive influence on productivity, while R&D exhibits a larger productivity-enhancing effect. We also find a complementary relationship between e-commerce and R&D on enhancing productivity. Crucially, the inter-industry network externality of e-commerce significantly contributes to productivity.

Original languageEnglish
Pages (from-to)272-283
Number of pages12
JournalInformation Economics and Policy
Issue number4
StatePublished - Dec 2013


  • E-commerce
  • Network externalities
  • Productivity
  • R&D spillovers


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