Scribd
Upload
123 views2 pages

Taiwan's Economic Transformation

Through hard work and economic management, Taiwan transformed from an underdeveloped agricultural island to a high-tech economic power and major exporter. Foreign investment helped introduce modern technology while many labor-intensive industries shifted to China and Southeast Asia due to rising costs. Taiwan is now a creditor economy and the world's fourth largest foreign exchange holder. Although Taiwan experienced sustained growth and recession in 2001 and 2008, the economy saw robust recovery in 2010. Foreign trade, dominated by electronics and imports of materials and capital goods, remains important while Taiwan further transforms to high-tech and services.

Uploaded by

Nayo Safwan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
123 views2 pages

Taiwan's Economic Transformation

Through hard work and economic management, Taiwan transformed from an underdeveloped agricultural island to a high-tech economic power and major exporter. Foreign investment helped introduce modern technology while many labor-intensive industries shifted to China and Southeast Asia due to rising costs. Taiwan is now a creditor economy and the world's fourth largest foreign exchange holder. Although Taiwan experienced sustained growth and recession in 2001 and 2008, the economy saw robust recovery in 2010. Foreign trade, dominated by electronics and imports of materials and capital goods, remains important while Taiwan further transforms to high-tech and services.

Uploaded by

Nayo Safwan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Additional information about Taiwan Through the hard work as well as sound economic management, Taiwan has transformed

itself underdevelop, agricultural island to an economic power that is leading a producer of high-technology goods. Foreign investment in Taiwan helped to introduce modern, laborintensive technology into the island. Besides, Taiwan also became the major exporter of labor-intensive products. In the 1980s, as a result of the appreciation of the New Taiwan Dollar, rising labor cost, and increasing environment consciousness in Taiwan, many laborintensive industries have shifted their production to China and Southeast Asia. Taiwan has transformed itself from a recipient of other countries to an aid donor and major foreign investor, especially in Asia. Taiwan is now a creditor economy, holding the worlds fourth largest stock of foreign exchange which last on December 2011. Although Taiwan enjoyed sustained economic growth, full employment, and low inflation for many years, yet in 2001, Taiwan had joined the first recession since 1949. With the economic downturn, Taiwans economy slumped into recession in the second half of 2008. The economy of Taiwan saw a robust recovery in 2010. Foreign trade Foreign trade has been the engine of Taiwans rapid economy growth during the past 50 years. Taiwan economy remain export-oriented, hence it depends on an open world trade regime and remains vulnerable to fluctuations in the world economy. The total value of trade has increased over 5 years. Export composition changed from predominantly agricultural commodities to industrial goods. The electronics sector is the most important industrial export sector in Taiwan. Taiwan became a member of World Trade Organization (WTO) as a special customs territory in January 2002. Firms of Taiwan are the largest suppliers of computer monitors and leaders in Pc manufacturing of the world, although now much of the final assembly of these products occurs overseas, especially in China. Imports are dominated by raw materials and capital goods, which account for more than 90% in total. Taiwan imports coal, crude oil, and gas to meet most of its energy needs. The United States is now Taiwans third-largest trade partner. Imports from the United States consist mostly of machinery as well as equipments. Besides, Taiwan also acts as a member of Asian Development Bank, the WTO, and the Asia-Pacific Economic Cooperation. Agriculture Although less than one-quarter of Taiwans land area is arable, virtually all farmland is intensively cultivated. Yet the agricultural sector only comprises 1.6% of Taiwan s GDP. Taiwans main crops are rice, fruit, and vegetables. It largely self-sufficient rice production, and Taiwan imports large amount of wheat, corn, and soybeans. Higher standards of living led to the increasing demand for a wide variety of high-quality food products. Hence, in overall, United States agricultural exports have a total of $ 3.0 billion annually, making Taiwan the United States sixth largest agricultural export destination. The agricultural

exports of Taiwan also include frozen fish, aquaculture and sea products, canned and frozen vegetables. Economic Outlook Taiwan has faced many of the economic issues as other developed economies. As laborintensive industries have relocated to countries with low-cost labor, the future development of Taiwan will rely on further transformation to high technology and services-oriented economy and carving out its niche in the global supply chain. The economy of Taiwan currently has become increasingly linked with China, and the Ma administration is expected to be further developed and liberalize cross-Strait economic relations, particularly through negotiations under the Economic Cooperation Framework Agreement (ECFA).

You might also like