ABSTRACT
Based on a prototype industry-level production account initiated by the Asia KLEMS, we construct an output and input data for 31 Taiwanese industries for the period 1981–2010. Empirical results indicate that the industry weights for the primary and secondary industrial sectors decrease over time, while the importance of the tertiary sector increases during our studied time period. The industry weights of most other industries in the secondary sector fell except for ‘13 Electrical and optical equipment’ and ‘11 Basic and fabricated metal’. On the contrary, most industries’ weights in the tertiary sector rose during 1981–2010. While the source of growth analysis results shows that intermediate inputs played a major role in gross output growth for the whole Taiwanese economy, the contribution from intermediate inputs has been higher in manufacturing industries than in tertiary industries. Among all three types of intermediate inputs, the key contribution to gross output growth comes from the raw material input in manufacturing industries, whereas business service input is the major input in service industries. Results also uncover that the contribution of labor input has been small. Finally, we find a significant advantage of Taiwan’s service industries over its manufacturing industries for TFP growth during the study period.
