Template-type: ReDIF-Paper 1.0
Author-Name: Chia-Lin Chang
Author-Email: changchialin@nchu.edu.tw
Author-Person: pch286 
Author-Workplace-Name: Department of Applied Economics, Department of Finance, National Chung Hsing University, Taiwan
Author-Name: Michael McAleer
Author-Person: pmc90 
Author-Workplace-Name: Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam and Tinbergen Institute,
	The Netherlands, Department of Quantitative Economics, Complutense University of Madrid, and Institute of
	Economic Research, Kyoto University. 
Author-Name: Yu-Chieh Wu
Author-Workplace-Name: Department of Applied Economics. National Chung Hsing University Taichung, Taiwan
Title: Industrial Agglomeration and Use of the Internet 
Abstract: Taiwan has been hailed as a world leader in the development of global innovation and industrial clusters for the past decade. 
	This paper investigates the effects of industrial agglomeration on the use of the internet and internet intensity for Taiwan manufacturing 
	firms, and analyses whether the relationships between industrial agglomeration and total expenditure on internet usage for industries 
	are substitutes or complements. The sample observations are based on 153,081 manufacturing plants, and covers 26 2-digit industry categories 
	and 358 geographical townships in Taiwan. The Heckman selection model is used to adjust for sample selectivity for unobservable data for 
	firms that use the internet. The empirical results from two-stage estimation show that: (1) for the industry overall, a higher degree of 
	industrial agglomeration will not affect the probability that firms will use the internet, but will affect the total expenditure on internet 
	usage; and (2) for 2-digit industries, industrial agglomeration generally decreases the total expenditure on internet usage, which suggests 
	that industrial agglomeration and total expenditure on internet usage are substitutes.
Classification-JEL: D22, L60.
Keywords: Industrial agglomeration and clusters, Global innovation, Internet penetration, Manufacturing firms, Sample selection, Incidental truncation.

Note: For financial support, the first author wishes to thank the National Science Council, Taiwan, and the second author is grateful to the National 
	Science Council, Taiwan and the Australian Research Council.
Length: 43 pages 
Creation-Date: 2015-08  
Number: 2015-09 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae1509.txt
File-URL: https://eprints.ucm.es/id/eprint/33038/1/1509.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:1509