The Impact of Congestion effect on the performance of Taiwanese Businessman in different industrial cluster of China

DOI: 10.5176/2251-1938_ORS27

Authors: Yi Chun Kuo and Wen Yu Tsai

Abstract:

Congestion, as used in economics, refers to situations where increases in one or more inputs generate no increase in one or more outputs. Numerous studies have documented the positive benefit of clusters. However, a number of researchers mentioned that when a region is flooded with excessive manufacturers in the same cluster, other issues can arise, such as congestion, input and output market competition, and external diseconomy. This study tries to check the impact of congestion effect on the performance of Taiwanese businessman in different industrial cluster of China. Especially to identify whether those inefficiency firms are caused by technical inefficiency, scale inefficiency, or congestion inefficiency.

Keywords: congestion, efficiency, Taiwanese businessman, cluster, China, data envelopment analysis (DEA)