Digitization, Automation, Network Externalities, and Effectiveness - Firm-level Evidence from Taiwan

Abstract

This study utilizes constructed firm-level panel data encompassing Taiwanese manufacturing firms from 1999, 2000, and 2002. We endeavor to examine the relationship between the adoption of digital and automated technologies by applying the seemingly unrelated bivariate probit model. Furthermore, digital capital possesses a distinctive characteristic that sets it apart from traditional inputs-it has the potential to generate significant economic externalities. Consequently, in addition to incorporating the relationship between the adoption of digital and automated technologies into our model, this study also investigates the e-commerce externalities within and between industries.