Template-type: ReDIF-Paper 1.0
Author-Name: Chia-Lin Chang
Author-Workplace-Name: Department of Applied economics, Department of Finance National Chung Hsing University, Taiwan.

Author-Name: Yu-Chieh Wu
Author-Workplace-Name:
 Department of Applied Economics National Chung Hsing University Taichung, Taiwan.

Author-Name:
 Michael McAleer
Author-Workplace-Name:
 Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of 
	Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of 
	Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.
Title: A statistical analysis of industrial penetration
 and internet intensity in Taiwan
Abstract: This paper investigates the effect of industrial penetration (geographic concentration of industries) and internet intensity (the proportion of 
	enterprises that use the internet) for Taiwan manufacturing firms, and analyses whether the relationships are substitutes or complements. The sample 
	observations are based on 153,081 manufacturing plants, and covers 26 two-digit industry categories and 358 geographical townships in Taiwan. The 
	Heckman selection model is used to accommodate sample selectivity for unobservable data for firms that use the internet. The empirical results from 
	two-stage estimation show that: (1) a higher degree of industrial penetration will not affect the probability that firms will use the internet, but 
	will affect the total expenditure on internet intensity; (2) for two-digit SIC industries, industrial penetration generally decreases the total 
	expenditure on internet intensity; and (3) industrial penetration and internet intensity are substitutes.
Classification-JEL: D22, L60.
Keywords: Industrial penetration, Internet intensity, Sample selection, Incidental truncation.
Length: 50 pages 
Creation-Date: 2018-01
Number: 2018-02
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae1802.txt
File-URL: https://eprints.ucm.es/id/eprint/46076/1/1802.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:1802