Analysis of Factors Influencing Taiwan's Unregistered Overseas Investment Behavior

Ya-Hwei Yang and Ying-Yi Tu

Asian Economic Journal, 2004, vol. 18, issue 2, pages 213-231

Abstract: There has been a significant increase in Taiwanese investment overseas since the mid-1980s. However, when Taiwanese investors choose to pursue overseas investment, they do not necessarily register this with the government (specifically, with the Investment Commission at the Ministry of Economic Affairs). Although this is a common phenomenon, there has thus far been a scarcity of in-depth analysis of this trend within the published literature. The official statistics on Taiwanese overseas investment, as provided by the Taiwanese government, differ significantly from those provided by the countries in which the investments take place. We can deduce from this that some businessmen engage in foreign investment without registering it with the government, and as a consequence, suggest that the reasons for such non-registering behavior are worthy of study. Copyright 2004 East Asian Economic Association.

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