This paper attempts to disclose the dynamic evolution features and industrial heterogeneity of growth drivers of the total factor productivity (TFP) in Taiwan’s service industry. As a result, the sequential data development analysis (DEA)-Malmquist index model was adopted to compute the TFP and its components of service industry in Taiwan. The results show that the TFP growth, which is obviously dominated by technological progress, has entered a downward spiral, featuring significant industrial heterogeneous. This conclusion was proved valid through robustness analysis. On this basis, it is concluded that Taiwan should promote new technology efficiency and pursue the coordinated development of the service industry, in addition to enhancing the research and development of new technologies.
total factor productivity, sequential DEA-Malmquist productivity index model, technological progress, technical efficiency
This paper was supported by the science and technology research program of Chongqing Municipal Education Commission (Grant No. KJQN201800905).
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