Research

Published Papers

1. Firm heterogeneity in production networks: evidence from indirect exporters in Taiwan

   Erin Hui-Chuan Kao, Jin-Tan Liu, Teddy Chia-Wei Chen, and Thz-Chia Shih

   Applied Economics Letters, Dec 2025

   Published online December 5, 2025

   Abs DOI

   Using unique firm-to-firm transaction data linked to customs data, we find that direct and indirect exporters outperform firms that operate only domestically, and the performance premium increases as firms become more closely connected to foreign markets. Using both manufacturers and wholesalers as intermediaries, indirect exporters have a larger customer base but lower productivity than those that rely only on manufacturers. We also find a significantly negative association between the number of customers and productivity among indirect exporters, which suggests that firms with wider customer networks tend to have lower measured efficiency. The results indicate that productivity and relationship capability are correlated but different dimensions of firm heterogeneity.

Working Papers

1. Taiwanese Domestic Supply Chains: 2013–2022

   Chia-Wei Chen, Joonkyo Hong, Toshiaki Komatsu, Jin-Tan Liu, and Jen-Kuan Wang

   2026

   Abs PDF

   This paper documents the structure of Taiwan’s domestic production network from 2013 to 2022, using administrative value-added tax and business-to-business (B2B) transaction records spanning nearly all nonfinancial private-sector firms. We describe the institutional features of Taiwan’s VAT system and examine the internal consistency of the data. The network has grown steadily over the sample period and is highly skewed: a small number of large firms—concentrated in wholesale, retail, and high-tech manufacturing—account for a disproportionate share of domestic linkages and transaction values. By integrating customs records, we decompose each firm’s direct and indirect exposure to foreign markets. Although fewer than 15% of firms are direct importers or exporters, most firms source inputs from importers or sell to exporters within four degrees of separation, making them susceptible to foreign shocks propagated through wholesalers, retailers, and semiconductor producers.

2. Caught in a Sovereign Debt Quagmire: A Quantitative Assessment

   Chia-Wei Chen and Tai-Kuang Ho

   2023

Work in Progress

1. The Impact of Credit Constraints on Exporters and Importers: Evidence at Firm-Level Data

   Chia-Wei Chen, Erin Hui-Chuan Kao, Jin-Tan Liu, and Donald Lien