WHICH POLICIES ARE IMPORTANT FOR INDUSTRIALIZATION: THE CASE OF TAIWAN

Glenn Jenkins () and Chun-Yan Kuo

No 294414, Harvard Institute for International Development (HIID) Papers from Harvard University, Kennedy School of Government

Abstract: This paper examines the relative impact of tax incentives, trade policies, financial subsidy, real wage and real exchange rate on industrial investment and economic development over the past 40 years in Taiwan using an integrated cash flow model of industrial investments. The model is developed in such a manner that the movements of all the policy and macroeconomic variables are allowed to interact with each other in the economy. The results show that trade and macroeconomic policies are much more important than income tax or subsidized finance policies for the successful industrialization in Taiwan. The effects of the tax incentives and financial subsidy policies are minor in comparison with the impact of the fundamental trends in macroeconomic variables, such as the movement of the real exchange rate and the real wage rate.

Keywords: International Relations/Trade; Political Economy (search for similar items in EconPapers)
Pages: 59
Date: 1997-07
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/294414/files/harvard047.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:hariid:294414

DOI: 10.22004/ag.econ.294414

Access Statistics for this paper

More papers in Harvard Institute for International Development (HIID) Papers from Harvard University, Kennedy School of Government Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().