Economic restructuring and spatial changes in manufacturing in Taiwan, 1971–1986

Abstract

The precise impact of economic growth and restructuring on the spatial distribution of manufacturing in Taiwan has been subject to debate. Data at a small enough level of enumeration have not been available to permit and resolution of the question of whether or not manufacturing in Taiwan has been diffused to rural areas as a result of the macro-economic restructuring process. Data from the 1971 and 1986 Industrial and Commercial Census for Taiwan—Fukien Area, Republic of China, contain measures of manufacturing at the lowest administrative level (rural and urban townships). Maps, indices of dissimilarity from Lorenz curves, locational quotients, and net shifts based on these data indicate that the five major cities of Taiwan are still the major centres of manufacturing. The areas experiencing the greatest growth in manufacturing are the suburban townships adjacent to the major cities, townships along the Sun Yat-sen north-south freeway, or in proximity to special infrastructure projects. Future economic development in rural areas will be best served by enhancing opportunities to finance service activities rather than manufacturing