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This paper examines the relationship between the escalation in housing prices and categories of Taiwan's domestic consumption. While disposable income remains constant, a rapid escalation in housing prices should have a negative impact on unaffordability within society. However, under the hypothesis of the housing wealth effect, an increase in housing values should compensate the macro-economy by increasing consumption in the GDP calculation. Taiwanese data from 2007Q1 to 2018Q1 were adopted as the sample. From the vector error correction model results, it was found that over the course of the long-run equilibrium relationship, there was a statistically significant positive relationship that the society consumes more on durable goods of communication-related nature, as well as on non-durable goods such as personal clothing and accessories and leisure/cultural tourism. As for the short-run dynamic adjustment, there was a statistically significant positive relationship that the society consumes more in the durable goods component categories. It was identified that transportationrelated consumption accounted for the major part of the durable goods component. Therefore, with the rapid escalation in housing prices, it was observed that these consumption would compensate the consumption figures in the GDP calculation in Taiwan, thereby providing evidence that housing prices were related to macroeconomic performance. [ABSTRACT FROM AUTHOR]

By reviewing Taiwan’s economic development after the Second World War, economic activities at various stages are driven by international trade exports, which has led to Taiwan’s economic growth and rising per capita income. Therefore, the situation of Taiwan’s export industry is of great significance to its development. In this study, the Environmental Input-Output (EIO) model, the World Input-Output Database (WIOD), and Socio-Economic Accounts are used to investigate the CO2 emissions of Taiwan’s export industry sectors and its relationship with other countries. It is analysed how particular export sectors cause carbon dioxide emissions in domestic production supply chains (by tracking downstream to upstream), and how carbon emissions in specific sectors affect export output. The empirical results show that the growth rate of CO2 emissions in Taiwan’s export industry is roughly the same as its GDP growth rate and far lower than Japan and the United States. From the perspective of industry categories, water transport, chemical products and electronic optical products are Taiwan’s export sectors with high CO2 emissions and rapid growth. [ABSTRACT FROM AUTHOR]

The study uses a Markov-switching model (MSM) to investigate the relationship between foreign-exchange earnings from tourism and macroeconomic factors in Taiwan. The MSM decomposes foreign-exchange cycles into a high growth stage (HGS) and a low growth stage (LGS). The steady-state probability remains foreign-exchange earnings from tourism in the HGS and LGS are 0.7486 and 0.8631, respectively. The findings indicate that foreign-exchange earnings from tourism in Taiwan have a high tendency to stay in the LGS state and a low tendency to shift from the LGS state to the HGS state. Furthermore, the results show that macroeconomic factors in Taiwan can continuously affect foreign-exchange earnings from tourism in the HGS. [ABSTRACT FROM PUBLISHER]