Abstract
The economic growth pattern of investment has been proved in Asian countries, but it often falls into development bottleneck after the economy develops to a certain extent, especially in countries with lack of resources. One of the important reasons is the supply of energy and electricity. Establishing a sustainable development path requires thinking about economic development and environmental protection at the same time. This will face how to establish a balanced industrial structure and a stable electricity supply system, and investment in production equipment and R&D will be an indispensable factor. R & D investment and equipment investment contribute to economic growth. This study employs a dynamic industry-related model to estimate the economic spillover effect from both R&D investment and equipment investment. The present study attempts to measure (1) the difference in the investment multiplier of R&D investment and equipment investment, (2) the difference in the employment creation effect of investment R&D and equipment investment. Analysis of future industrial development strategies needs to consider energy and electricity consumption. This study will estimate (3) the impact of equipment investment and R&D investment on power consumption, and compare the differences between the two on the industry. This study uses mathematical dynamic industry-related models to estimate (1) ~ (3) and found that different investment methods will make the inter-industry economy have different spillover effects, and also show different demand in power consumption.
Highlights
Under the influence of liberalization in the 1990s, Taiwan was pressured by the international community to relax control on trade and the financial market
Economic Spillover Effects of Investment Based on the nature of the industries, we divided the 166 sectors listed in The Report on 2015 input-output tables into seven major industries
The economic effects on machinery-related industries accounted for 50.92% of the overall economic spillover effect
Summary
Under the influence of liberalization in the 1990s, Taiwan was pressured by the international community to relax control on trade and the financial market. Governments and companies tried to solve economic shocks with research and development (R&D) and equipment investment strategies to increase employment and increase competitiveness. Achieving sustainable economic development in a country necessitates advances in R&D technologies and equipment investment, which enable a country to adapt to changes in the international economic environment and realize industrial restructuring (Hong et al, 2017). The stability of energy and electricity supply has become a key factor in Taiwan’s economic development, through R&D and production equipment renewal as one of the solutions. In order to achieve the above issues, this paper will use economic dynamic industry-related models to analyze economic effects and electricity consumption
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