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The evolution of Taiwan's political economy seems paradoxical. From the 1960s to 1980s, Taiwan went through economic transformations that have been called an “economic miracle.” This was followed by a successful democratic transition from the late 1980s to mid‐1990s that might be considered a “political miracle.” In the early 1990s, Taiwan could be regarded as a success story and a model for developing nations. Yet, Taiwan was soon to “enter troubled waters” marked by growing conflict and threat from China (PRC), fears about the “hollowing out” of its previously vaunted economy, and vicious polarization and gridlock in its domestic politics. We argue that many of the challenges facing Taiwan derive from unanticipated and unintended costs of its previous successes. In particular, what worked to promote successful economic and political development at one point later became counterproductive in the changed circumstances created by the country's rapid developmental trajectory. Our basic research questions, hence, are whether the challenges currently facing Taiwan's political economy can be explained by the country's past pattern of development and, if so, whether these linkages appear to be connected to success or failures in Taiwan's history. [ABSTRACT FROM AUTHOR]

Since the early 2000s, transfer of development rights has served as a compensatory regime to address the ‘reserved land’ issue in Taiwan, a planning challenge that has seen private owners remain uncompensated for land flagged by the government for public facilities. This article investigates two aspects of the implementation of transfer of development rights in Taiwan. First, it examines the local adaptation process by which the use of transfer of development rights has been diverted from its original function of historical preservation. Second, it maps the spatial impact of this compensation process, using Sanchong District in New Taipei City as a case study. We demonstrate that trends of high-end developments in prime locations and ‘piecemeal transfer’ in the city’s older, inner neighbourhoods show worrisome patterns of uneven development. We conclude that the neoliberal effects generated by the transfer of development rights policy have complicated the planning challenge the policy was initially intended to resolve. [ABSTRACT FROM AUTHOR]

This paper investigates whether and w hy the Taiwanese investors in mainland China are pursuing a different location selection strategy from other foreign direct investors. I find that, compared to the general foreign direct investors, Taiwanese direct investors seem to be more dependent on the autonomy of local governments, especially as investment in a locality increases. [ABSTRACT FROM AUTHOR]

Taiwan is a regional laboratory for Anglo-American-style corporate governance; we examine it from legal, capital, labor, and management perspectives. Statistical analyses of Taiwanese-listed companies show that independent directorship reduces financial distress and improves information disclosure. [ABSTRACT FROM AUTHOR]

The U.S.-anchored TPP and the China-centered RCEP may be compatible or in rivalry. Regardless of the future relationship of the two trade pacts, Taiwan does not have the luxury of picking and choosing. Given its domestic entrenched political cleavages and very challenging geo-strategic and geo-economic environments it faces, Taiwan should pursue membership in both blocs. Indeed, pursuing one can help its bid for the other. Should Taiwan be excluded from both, its economy would not be doomed, as there are still some unrealized trade benefits to exploit. However, a Taiwan not able to join the two clubs would have to absorb psychological and real impacts. Whether as an outsider or insider of the two trade blocs, Taiwan will have to go through industrial upgrading in a big way. [ABSTRACT FROM AUTHOR]

The Trans-Pacific Partnership (TPP), led by the United States, aims to create a comprehensive and high-standard twenty-first century agreement. Given that the TPP is likely to transform the regional trade landscape in the future, its final shape will profoundly impact Taiwan's trade-driven economy. Since Taiwan's economic strengths have been built on its robust electronics industry, how the TPP alters regional electronic supply chains and challenges Taiwan's electronics industry are crucial questions for investigation. This paper intends to unravel the possible consequences of the TPP on Taiwan's electronics sector by using economic analysis and modeling. The findings highlight the significance of the TPP to Taiwan's electronics industry and are followed by policy proposals intended to sustain Taiwan's global competitiveness in electronics sector. [ABSTRACT FROM AUTHOR]

Proponents of the TPP describe it as a 21st-century agreement that will reach further into domestic economies and domestic policy settings than conventional free trade and investment agreements. Beyond the traditional approach that deals with trade barriers between borders, TPP negotiations attempt to tackle issues behind the border by addressing how policies should be formulated and managed domestically. The TPP is unique in targeting the philosophy and processes, as well as the substance, of domestic policy and regulatory decisions. The paper examines this "behind-the-border" approach by the TPP. The leaked chapter on regulatory coherence illustrates an attempt to establish institutional and procedural frameworks for the conduct of domestic regulations. In light of the proposed TPP obligations regarding regulatory coherence, this paper reviews the challenges and opportunities faced by Taiwan if it becomes involved in TPP negotiations. [ABSTRACT FROM AUTHOR]

The Obama Administration's 'Pivot to Asia' has wide-ranging implications for Asian nations, yet for Taiwan many implications of the pivot remain ambiguous. The Trans-Pacific Partnership (TPP) is one prime example of Taiwan's current foreign policy uncertainties. As the economic arm of the Pivot to Asia, the TPP has the potential to become the world's biggest free trade agreement, creating unprecedented trade opportunities for member states. Taiwan's government has openly expressed a desire to join the TPP, but faces unique obstacles in its path toward membership. Drawing on lessons from Taiwan's previous successes in establishing fisheries agreements and joining fishing organizations, this article explores Taiwan's limitations and options as it strives toward TPP accession. [ABSTRACT FROM AUTHOR]

This study explores the transitional processes of Taiwan's innovation system over the past half century, evolving from being rooted in traditional industries to attaining development in a virtuous cycle of development. Our approach is inspired by the Arena of Development theory and acknowledges the system of transformation failures, in which we highlighted the types of failures that might impede economic progress and how they were overcome in the evolutionary targeting of Taiwan's industrial development. Our findings demonstrate that the success of Taiwan's economic transition is targeted on, and evolves with, a series of macrolevel policies in the early phase of development; mesolevel institutional mechanisms to attain the industrial emergence settings; and, in pursuit of the virtuous cycle of development, the microlevel collaboration platform. We attribute the success of Taiwan's industrial system to this series of systematic government interventions. This study provides novel and salient normative principles that guide transformational policymakers in governing transitional processes of innovation system. [ABSTRACT FROM AUTHOR]

This study follows the historical evolution of Taiwan’s household appliances industry and reviews the establishment of design divisions in domestic household appliance manufacturers, including Tatung and Sampo. By examining historical documents and conducting interviews with senior industry personnel, this study explores the ways in which household appliance companies respond to domestic consumer characteristics. Further, this paper analyses the companies’ industrial policies in the mid-1980s under international economic liberalization and the technical support received from overseas partners. [ABSTRACT FROM PUBLISHER]

The changes to the developmental state resulting from Taiwan's political liberalization and democratization have created a complex political-economic decision-making landscape that has affected the process of financial reforms. In this article, the author examines the impact that the changes in the nature of the Taiwanese state, institutions, and the increase in the number of important political actors have on financial liberalization and reforms that have been undertaken thus far, providing a theoretical framework to explain how institutional changes, the interactions of political actors, and changes in incentives in the political system can help one understand the politics of financial reform. Using this theoretical framework, the author examines the application of the theory to the Taiwan case in depth. [ABSTRACT FROM AUTHOR]

This paper examines the transformation of the textile and garment industry in Taiwan from the period after 1945, when the industry was small and inconsequential, to the contemporary period, where the industry is a world leader at the frontier of fibre and new material development. The drivers of these developments include the role of industrial policy, initial assistance from the USA, generous export-orientated, investment-friendly incentives, and regulatory pressures imposed in global markets. Taiwan successfully restructured and reached the innovation-driven phase of the industry by the late 1980s, relocating labour-intensive activities to China and Southeast Asia, with Taiwan specialising in technology-intensive activities. Although the industry's employment and exports have fallen since the 1980s, the successful evolution of firms intohigh value-added and upstream activities continues to maintain the industry's dynamism in Taiwan. [ABSTRACT FROM AUTHOR]

In the present paper, an integrated cash flow model is developed to examine the relative impact of tax incentives, financial subsidies, and macroeconomic variables on the profitability of industrial investments. It allows for the variables in the model to interact with each other. An application of the model is carried out for Taiwan, which has implemented a variety of fiscal incentives over the past 40 years. The principal policy conclusion is that trade and macroeconomic policies are much more important than income tax incentives or subsidized finance policies in determining the success of Taiwan's industrialization process. The effects of all of the fiscal incentives are found to be much smaller than those of the trade policies or the fundamental trends in macroeconomic variables such as the movement of the real exchange rate and the real wage rate. [ABSTRACT FROM AUTHOR]