Lower Bounds of Concentration in Taiwanese Manufacturing ---Do Exports Matter?

[[abstract]]This paper aims to test Sutton's "lower bounds" approach on the analysis of market concentration in a small open economy, Taiwan. Exporting, the important feature of a small open economy is also considered to investigate the role of foreign competition on market structure. Estimated by a stochastic frontier approach, the findings are in accordance with Sutton's predictions, whereby the lower bounds for high advertising and/or R&D-intensive industries are higher than those for low advertising and/or R&D-intensive industries in Taiwan. While, the lower bounds of concentrations for exporting intensive industries do not significantly from that of non-intensive industries. In addition, deviations from the lower bound are explained by industry characteristics.[[sponsorship]]淡江大學 經濟學系; 國科會社會科學研究中心; 教育部[[conferencetype]]國內[[conferencetkucampus]]台北校園[[conferencedate]]20031017~20031017[[booktype]]紙本[[iscallforpapers]]Y[[conferencelocation]]臺北市, 臺