Taiwan's Economy Research Articles

Evaluating Taiwan's economic and labour market recovery strategies against COVID‐19

AbstractSince its emergence in 2020, COVID‐19 has profoundly influenced the Taiwan economy and employment landscape, leading to differential impacts across sectors. In response to this unprecedented crisis, the Taiwanese government promptly enacted the “Special Regulations on the Prevention and Rescue of Severe Specific Infectious Pneumonia” on February 25, 2020, which came into force on March 13. This study examines the pandemic's effects through various stages, with a particular focus on the service industry, the sector most affected owing to diminished domestic demand. Using a computable general equilibrium model by integrating monthly changes, the study assess the effectiveness of the Taiwan government's interventions in mitigating job losses and stabilising the economy. Our findings indicate that without the government's relief and revitalisation measures, unemployment rates would have surged significantly. The study underscores the critical role of policy interventions in mitigating the economic impacts of the pandemic.

Impact of Russia Ukraine War on Taiwanese Economy

The economy of Taiwan is characterized by a strong industrial base and high-tech manufacturing capabilities. It heavily relies on international trade, with the United States, China, Japan, and the European Union being major trading partners. While the trade volumes with Russia and Ukraine in 2021 were relatively smaller, there were ongoing economic interactions and potential for further growth. Geopolitical considerations, particularly related to China's influence, can impact Taiwan's trade relationships with various countries. The Russia-Ukraine war has had a major impact on the Taiwanese economy. The war has disrupted trade, tourism, energy prices, and supply chains, all of which have had a negative impact on the country's economic growth. The future outlook for the Taiwanese economy is uncertain, but the government is taking steps to mitigate the impact of the war.

Overcoming the Barrier to Cross-Strait Trade to Advance Taiwan's Economic Growth

Abstract The purpose of this research is to present a comprehensive framework for studying and finding a solution to the cross-strait dilemma between China and Taiwan, which goes beyond the political aspect. China has become a global economic powerhouse, significantly affecting trade throughout the Asia-Pacific region and beyond. Taiwan has become increasingly dependent on China for its economic growth, with 40% of our reliance on the mainland. However, recent political changes and opposition to China have led to strained relations, which are now impacting our exports. To ensure the well-being and interests of the Taiwanese people, our leaders need to recognize the current situation and adjust our national strategy accordingly. Our focus should be on stabilizing cross-strait relations, promoting economic and trade cooperation, and working towards a mutually beneficial partnership based on equality, cooperation, and trust. The most important thing is to prioritize the Taiwanese people's welfare and create a strategic plan that benefits both. JEL classification numbers: D72, F10, F17. Keywords: Mutual Trust, Mutual Benefit, Equality, Cooperation, Relationships.

Labor and Educational Migration оf Mongolian Residents to South Korea and Canada

At the beginning of the 21st century. Northeast Asia has become one of the centers of economic development and growth. There are many reasons for this. One of the main ones is the rapid growth of the economies of China, Japan, South Korea, and Taiwan. Thus, China has become the largest economic force in the region. Japan and South Korea have powerful industrial and technology companies that successfully compete in the global market. In addition, Northeast Asia has a high level of education and science, so China, Japan and South Korea are investing in scientific research, which attracts highly qualified specialists to these countries. Across the Pacific Ocean from Asia, on the North American continent, Canada has a strong economy based on industries such as natural resources, manufacturing, finance and innovation. As part of this study, the author examined the reasons for the migration of Mongolian residents to South Korea and Canada.

Taiwan's Economic Security in the Shadow of Chips Nationalism

Taiwan's Economic Security in the Shadow of Chips Nationalism

Comparison of Hong Kong And Taiwan Economic Development in the Context of the Oil Crisis

Hong Kong and Taiwan are part of China and are similar in politics, economy, culture, etc. But in response to the two oil shocks in the 1970s, the two places showed different patterns of economic decline. Taiwan's economy reacted quickly to the oil shock, but the decline was more moderate, while Hong Kong's recession tended to lag global crises, but the reduction was more significant. From the perspective of industrial structure, this paper analyzes the differences in development strategies and industrial structure before the first oil strike and between them through case comparison. This paper finds that Taiwan's economic decline pattern was closely related to its vigorous development of the import substitution industry. In contrast, Hong Kong's industry and trade were less affected, but the rapid growth of finance and real estate at that time created economic instability. The author believes retaining a specific high-end manufacturing industry can stabilize the local economy. The conclusions of this paper can be used for reference in the economic transformation of developing regions.

From “Unification” To “Independence”: The Change of Taiwan’s Authorities’ Positioning on Cross-Strait Relations under The Rise of Emerging Middle Class

After the Chinese Civil War, Taiwan went through a process of profound structural change in its economy towards industrialization, which was most characterized by the growing power of the middle class under an industrialized society, a power that in turn acted on Taiwanese society and pushed forward the process of democratization in Taiwan. Contrary to the booming economy of Taiwan, the international status of the region has been in tatters. After the Restoration of the lawful rights of the People's Republic of China in the United Nations, the Taiwan authorities have completely lost the international recognition of representing the whole of China, and the legitimacy of the martial law rule based on this has been gradually eroded. With the authoritarian rule in danger, the society of Taiwan is in urgent need of reforms. The emergence of a large and self-centered middle class became an important stimulus for Taiwan's democratic transition, and the 1980s saw the rise of social movements in Taiwan, with the idea of "Taiwan's independence" being raised more and more frequently in the course of exchanges with the Kuomintang (KMT) authorities. This paper will use stimulus-response theory to examine how the stimulus of the rise of the emerging middle class has affected the evolution of the Taiwan authorities' positioning of cross-strait relations from "unification" to "independence", and finally draw the conclusions of this paper.

Exploring the Interplay between Trade and Industrial Policies and the Impact of Geopolitics on the Transformation of Taiwan's Economy

Over the past five decades, Taiwan's economy has shifted from inward-oriented to outward-oriented, from an import-substitution policy to an export-expansion policy. This evolution in economic structure has also brought about changes in the industrial landscape. While there is an ongoing debate about the respective roles of the market and the government in promoting Taiwan's economic growth, this article argues that the history of Taiwan's economy demonstrates a mutually beneficial relationship between trade and industrial policies. The integration of market forces and government intervention has played a crucial role in Taiwan's economic success story. However, the dynamics between the United States and China, as well as the emergence of new Asian regionalism, pose challenges to Taiwanese industries and enterprises. In conclusion, this article emphasizes the importance of refining trade and industrial policies in line with the geopolitical context in order to maintain the momentum of Taiwan's economy.

The impact of the COVID‐19 pandemic on high‐skilled and low‐skilled labor markets in a DSGE model

AbstractThis research analyzes the unequal impact of COVID‐19 on high‐skilled and low‐skilled labor in a dynamic stochastic general equilibrium (DSGE) model. The model is calibrated to fit Taiwan's economy and evaluates the effectiveness of various fiscal measures, including an increase in government spending, an increase in lump‐sum transfers, a disbursement of consumption vouchers, and an income tax cut, for combating the pandemic recession. Our results indicate that low‐skilled households tend to hoard labor more than high‐skilled households during economic downturns. An income tax cut outperforms other fiscal instruments in generating the highest aggregate welfare and in advancing output, employment, and consumption.

Development of Team Leaders' Management Skills - Evidence from Taiwan's Bakery Industry

Abstract With the development of Taiwan's economy, the management function of the pastry baking industry has evolved from a one-stop production model in the traditional baking era to a quantitative production model in a modern chain store centralized factory. The purpose of this study was to observe the development of management functions among seven production team leaders in different companies in the pastry baking industry. Based on the research theme, a semi-structured interview method was used to collect data from the respondents in order to understand the development of management functions of the grassroots team leaders in the bakery industry. It was found that the ability to work with others was most important to enhance the management function. Based on the results of this study, recommendations are made for human resources departments, production department heads and production team leaders in the bakery industry, as well as for future research on the development of management functions. Keywords: Function, Functional Development, Development of production team leader management functions.

Board composition and corporate governance performance: investigating the effects of diversity

ABSTRACT This study investigated the diversity of the BOD and explored its impact on corporate governance through quantitative empirical analysis. This study uniquely adopted Taiwan Stock Exchange Corporate Governance 100 Index (TWSE CG 100 Index) as the measurement of corporate governance performance. Five highly related indicators, i.e. gender, independence, education, legal, finance or accounting profession, and seniority to measure board diversity, which could be efficient variables on predicting the firms’ likelihood being listed in the TWSE CG 100 Index, were used as independent variables. The results showed that board independence and the seniority of directors have a positive impact on corporate governance. This study made several important contributions. First, this study shed light on the conflicting evidence on the relationship between board diversity and firm corporate governance performance for the Taiwan economy. Second, this paper uniquely adopted TWSE CG 100 Index, and the findings can contribute to giving investors predictions about the quality of corporate governance and can serve as an incentive for corporates to enhance superior corporate governance. Furthermore, this study can contribute to practice by providing optimization suggestions for BOD composition and nomination. At last, this paper demonstrated policy justifications and implications for Taiwan government.

Reassessing Taiwan’s New Southbound Policy: Does it Really Work?

The research purpose of this article is to explore and analyze the reason and impact of Taiwan's "New Southbound Policy". The results of the study show that although Tsai Ing-wen has always insisted on promoting the development of the "New Southbound Policy" since she came to power in 2016 and hopes to use it to reduce the high economic dependence on mainland China and expand Taiwan's political survival space on the international stage, but in essence, the "New Southbound Policy" did not achieve Tsai Ing-wen's original goal. On the contrary, the economic ties between Taiwan and the mainland are still deepening and consolidating. From a certain perspective, the implementation of the "New Southbound Policy" has indeed promoted Taiwan's economy toward diversification and has achieved multi-level economic development. However, based on the huge economic volume of mainland China, as mainland China releases the control of the Covid-19 epidemic, many companies in Taiwan will not be able to ignore the re-communication and connection with the mainland economy. The economic ties between the two sides will remain close for a long time to come.

The impact of COVID-19 on the productivity of large companies in Taiwan

The outbreak of COVID-19 at the end of 2019 spreads over the world extensively and rapidly. The daily lives are affected by lockdowns, work-from-home, and travel bans. The economic growth is stagnated. Many industries are severely affected by this pandemic. There are, however, also industries that are unexpectedly benefited from the pandemic. The objective of this paper is to investigate the industries in Taiwan that are affected by the pandemic. Samples of the top 1,000 manufacturing and the top 500 service companies in Taiwan are collected to calculate their productivities before the pandemic, in the period of 2016–2019, and during the pandemic, in the year of 2020. The results show that three industries: automobile, tourism, and electronic products distribution, have their productivities significantly decreased by 3.98%, 4.92%, and 1.27%, respectively. There are also four industries: electronic components, optoelectronic, electrical and cable, and oil, gas and electricity, whose productivities are unexpectedly increased significantly by 1.37%, 1.98%, 3.32%, and 4.31%, respectively. The impact of COVID-19 to large companies in Taiwan seems to be not severe. In 2021, approximately five sixths of the industries have their productivities increased. There are only five industries whose productivities become lower; however, the decreases are not significant, indicating that the economy in Taiwan is recovering from the pandemic.

National identities and cross-strait relations: challenges to Taiwan’s economic development

Abstract In the increasingly volatile global political order, national economic structures and international relations, integrated as they are, are showing concerning signs of strain. Taiwan, whose world-leading semiconductor industry is indispensable in Global Supply Chains and whose economic prosperity and security are critical to a stable global economic system, has received much research interest since the late 1980s. Against the background of a slowing Taiwanese economy, starting in the 2000s, this paper seeks to investigate the causes of Taiwan’s challenges and the linkages to the global economy vis-à-vis China. Based on previous research from different social science disciplines, this paper shows that Taiwan’s economic performance has been undermined by the declining effectiveness of its industrial policy and the general state intervention in the country, which is in turn caused by deep socio-political divisions on issues of national identity and Taiwan-China relations. The paper reveals the dilemma, which results from this.

An analysis on the preliminary benefits of aquaculture smart aeration control

Aquaculture in Taiwan is characterised by high breeding densities of up to five times higher than the normal breeding densities. Pollution in the breeding environment and its adjacent waters have exacerbated the occurrence of disease outbreaks in fish, shrimp and shellfish, which greatly impacted the economy. Therefore, the parameters pertaining to water quality status, especially dissolved oxygen are particularly important. In addition to the rising cost of labour, land, infrastructure and other materials, the capital needed to engage in aquaculture has risen, whereas the profits have decreased. This limits the growth of aquaculture and fisheries. To overcome this problem, it is essential to shift towards efficient and ecologically precise smart aquaculture. The application of industrialised and smart systems in the vertical diffusion and in-depth integration of aquaculture facilitates decision-making, improves the level of intelligence in breeding, and enhance aquaculture's contribution to Taiwan's economy.

Whether Family-owned Enterprises Affect the Correlation between the Extent of export and the Acquisition of the Third-party Assurance of the Corporate Social Responsibility Reports

Abstract What are the impacts of the extent of export on the corporate social responsibility (CSR) report disclosure and assurance of family firms? This research considers the role of Taiwan’s supply chain around the world and compares family-owned and non-family-owned enterprises to determine if there are differences on whether the firm issue CSR report and acquire the third party assurance in accordance with the extent of export. We utilizes companies listed firms from 2008 to 2019 as the sample. The results show that family-owned enterprises are less likely to issue corporate social responsibility reports and acquire the third-party assurance even if they have high export level. The research contributes to prior CSR report disclosure literature by showing evidence on the type of companies or corporate governance mechanisms that could acquire the assurance service of the third party. Moreover, the economy in Taiwan mainly relies on the massive export. The evidence provided by this study should give valuable implications to the academia, practice and government. Keywords: Family-owned enterprises; corporate social responsibility report; extent of export; third party assurance.

PERFORMANCE EVALUATION OF BILATERAL ECONOMIC COOPERATION BETWEEN TAIWAN AND PARTNER COUNTRIES UNDER NEW SOUTHBOUND POLICY: PAST, PRESENT, AND FUTURE

Purpose – in light of the Taiwan New Southbound Policy (NSP), this paper aims to evaluate the performance of bilateral cooperation between Taiwan and its economic partner countries in order to have a better understanding of the coherence of reciprocal relations in the past, present and future. Research methodology – firstly, both individual forecasting models and combining forecasts were employed to predict the future values based on a period of thirty years (1990–2019). Secondly, the paper proposes non-convex DEA to detect non-convex characteristics of datasets where the volume of inputs and outputs were unevenly allocated in past years. Finally, a DEA window was applied to provide efficiency scores for decision-making units (DMUs) across a period of twelve years (2014–2025). Findings – the results found that the efficiency of seven out of eight DMUs will improve in the coming years. With a stable performance in both scale and efficiency, Singapore is Taiwan’s most successful economic partner, followed by Malaysia. The NSP remained as a vital foreign policy in supporting Taiwan’s bilateral trade and outward foreign direct investment (OFDI). Research limitations – more inputs and outputs are required in order to reflect the overall performance of the bilateral cooperation between two economies. Furthermore, more extended models are worth further investigation. Practical implications – the forecasting values of exports and imports can be used in analysing Taiwan economy’s trade deficits. This study provides useful inputs for managers in allocating resources of inbound and outbound values, and reacting rightfully to the uncertain future. Originality/Value – the paper not only contribute much more than previous ones by evaluating into the relationship between size of scale and efficiency of bilateral economies but also provide advices for policymakers in creating mechanisms that can facilitate the NSP’s sustainable development.

Eliciting Brand Loyalty with Elements of Customer Experience: A Case Study on the Creative Life Industry

The Creative Life Industry (CLI) is an experiential industry within the experience economy in Taiwan. Given the scarcity of research on the realms of experience and brand loyalty within this field of the CLI, this study aims to further our understanding of how designing valuable realms of experience can generate brand loyalty in customers. Employing a qualitative research method, the present study focuses on how the CLI is experienced. Data were collected using in-depth semi-structured interviews with 20 customers and through observations; secondary data at two CLI sites in Taiwan were also used. The findings indicate that many elements play a role within the realms of experience in CLI businesses. These include cultural experience interest, relaxing and entertaining programs, guided tours with educational and esthetic meaning, living esthetic program relatability, architectural style and esthetics, fashionable product design, living design different from routine life, and uniqueness of service facilities. Moreover, elements of escapist and esthetic experiences have more significant effects on brand loyalty than other types of experience. The theoretical and practical implications are provided for CLI businesses and researchers.

Retail investor attention and IPO prices with a pre-IPO market

This study investigates whether retail investor attention influences initial public offering (IPO) subscription and prices in Taiwan's economy, which features little information asymmetry because of its pre-IPO market. We find that IPO trading prices in a pre-IPO market increase with investor attention before IPO filing date. Our results support attention theory and indicate that retail investors naïvely subscribe to IPOs that attract their attention, whereas underwriters employ pre-IPO market trading information rather than investor attention to price IPOs. The trading price in a premarket is more valuable than is retail investor attention for IPO pricing.

Association between Smoking and Overall and Specific Mortality in Patients with Bladder Cancer: A Population-based Study.

The role of smoking in the prognosis of bladder cancer may significantly impact clinical management. It is also a considerable burden to Taiwan's economy and health of its citizens. To search Taiwan's National Health Insurance Research Database to determine whether smoking affected overall and cancer-specific mortality of patients with bladder cancer. We collected data on basic information, tumor stage, and comorbidities. Each smoking case was propensity score-matched by age, sex, and diagnosis year to one control individual among bladder cancer patients. The study comprised a never-smoke and an ever-smoke group, with each group including 4,728 patients after matching. We evaluated the association between smoking and mortalities in patients with bladder cancer. Cox proportional regression modeling was used to estimate hazard ratios (HRs) of overall and cancer-specific mortality rates. Stratified analysis was also performed to estimate risk ratios of overall and cancer-specific mortalities in bladder cancer patients with and without a history of smoking history among different subgroups. The overall and specific mortality ratio of patients who were ever smokers were 1.15-fold and 1.16-fold, respectively, compared with those of never smokers (overall: 95% confidence interval [CI], 1.06-1.26, P = 0.0014; specific: 95% CI, 1.03-1. 03, P = 0.0176). Patients with bladder cancer who smoked and had significantly higher overall and specific mortality rates were those with Charlson Comorbidity Index (CCI)≥3 (overall: P = 0.0119; specific: P = 0.0092), diabetes mellitus (DM; overall: P = 0.0046; specific: P = 0.0419), and non-muscle-invasive bladder cancer (NMIBC; overall: P = 0.0038; specific: P = 0.0014). Overall and specific mortality rates were significantly higher in the ever-smoke group than in the never-smoke group. The ever-smoke group with male sex, CCI≥3, DM, and NMIBC had increased risks for overall and specific mortality.