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This study uses a stochastic frontier analysis (SFA) model to evaluate the relative cost efficiency of commercial banks in Taiwan in the wake of liberalization. The model is estimated using data made available through Taiwan's Banking Bureau and Financial Supervisory Commission. With data from before and after the 2008 financial crisis, our central result is that banks affiliated with bank holding companies (BHC) have become increasingly more efficient. While unaffiliated banks have generally increased their efficiency, they have not kept pace with respect to efficiency gains. Secondary findings are that, independent of ownership structure, both balance sheet and income statement composition affect efficiency. In particular, bank efficiency increases with growth in loans and capital prices. We also find evidence that labor productivity is a key explanatory factor behind efficiency differences across banks. As a result, a policy recommendation is made that banks invest in maximizing worker productivity. Finally, in addition to the insights gained from this study we contribute to the general literature on both bank efficiency and the use of the SFA model by applying it to new data in a new setting. [ABSTRACT FROM AUTHOR]

Traditional Western economic theory has long argued that financial "rigidity" is bad and restricts the free flow of market forces. However, the financial systems of several East Asian nations, particularly Taiwan, demonstrate that their illiberal practices have in fact been a positive factor in their industrialization and their much higher investment and savings rates as compared to traditional economies. The growth and financial success evidenced by the close link between the financial system and industrial policy of these nations has presented a real challenge to mainstream economic theory and practice in Western nations. [ABSTRACT FROM AUTHOR]

The rise of China in the 21st century has generated a new round of debates on American policy toward Taiwan. Generally speaking, one side suggests that Washington should adjust its Taiwan policy to improve its relations with China, while the other argues against downgrading the relations with Taiwan. Both sides invoke the concept of national interest, but the concept is not unproblematic, and cherry-picking different facts and arguments is far from convincing. This article has two purposes: using the concept of national interest to examine the Taiwan policy, and using this case to illuminate the concept itself. After reviewing the concept, I propose what I call ‘four Ps’ framework to facilitate policy-making and analysis. The framework comprises four factors that help determine which policy is in national interest. They are players (decision makers), preferences (foreign policy goals), prospects (possible outcomes), and power (the capability of achieving goals). [ABSTRACT FROM AUTHOR]

The purpose of this paper is to examine how economic growth and economic globalization contribute to poverty alleviation in Taiwan after its economic liberalization. This is the first study to investigate the separate impacts of export and import on poverty in Taiwan. Their distinct impacts highlight the importance for the Taiwanese government to shape trade strategies to boost export. This study is also the first to provide evidence showing the adverse influence of capital liberalization on poverty in Taiwan. The negative impact signifies that the warning with regard to the distributional effect of globalization may not be baseless. [ABSTRACT FROM AUTHOR]

Banking consolidation is a global trend, but in Taiwan, after the failure of the Second Financial Reform, it does not have a clear policy for bank mergers. This paper investigates whether mergers influence the cost efficiency of banks in Taiwan, and our results suggest that the government should utilize market mechanism to encourage FHC or large banks" mergers. We use the method of stochastic frontier approach (SFA) to investigate the uncertain relationship between merger and the cost efficiency of Taiwanese banks. Based on Battese and Coelli (1995), we use maximum likelihood estimation method to estimate the stochastic cost efficiency model and the inefficient model simultaneously. We find that, for Taiwanese banks, technology efficiency increases with time by lowering operation cost; cost efficiency decreases right after merger, and has to wait for three years to regain efficiency. The larger banks and FHC banks benefit more from cost savings than smaller banks. [ABSTRACT FROM AUTHOR]

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The article provides a comparative analysis of the state intervention strategies regarding the growth initiated by special economic zones (SEZs) in countries such as Taiwan, Indian, and South Korea as of September 2012, focusing on an examination of the free trade zones and policies of various SEZs. The relationship between export-promotion-based national policies and the use of SEZs to expand economies are also addressed, as well as an analysis of the reported industrial growth in the nation of India.

The island of Taiwan has successfully managed 60 years of fast-paced economic growth. Taiwan is a demonstrably resilient player in the global economy, while also maintaining high levels of income equality. However, there is a great deal of uncertainty surrounding whether the factors that have enabled and sustained the Taiwanese development project thus far will be an adequate means of managing the contemporary challenges facing the island. Taiwan may be becoming increasingly vulnerable to global economic conditions, and the island's future seems also to be increasingly tied to developments in the Chinese mainland. This paper examines the prospects for a continuing Taiwanese growth paradigm from both a cultural and an economic perspective and finds reason for optimism. This optimism is contingent on the strength of international export markets and prudent management of cross-Strait relations with the Chinese mainland. [ABSTRACT FROM AUTHOR]

This paper investigates the effects of employment protection legislation on the rates of hiring, separation, worker flows, job reallocation, and churning flows for the case of Taiwan. Our empirical identification takes advantage of a reform created by Taiwan's enactment of Labor Standards Law, which has substantially increased the costs of firing, and the implementation of the law's enforcement measures. Moreover, our identification also exploits the fact that the stringency of the law's provisions and the intensity of the law's enforcement vary with establishment size. On the basis of the monthly data at the establishment level for the period 1983-1995, we find that Taiwan's Labor Standards Law and its enforcement measures have dampened labor turnover for medium-sized and large establishments, while that of small establishments was not affected. ( JEL J65, J63, J88) [ABSTRACT FROM AUTHOR]

Quality improvement programmes are major impetuses of the Taiwanese economy. With governmental assistance, numerous industries have complied with the quality requirements of world-class manufacturers. Since the economic climate has changed rapidly in recent years, the National Quality Promotion Program (NQPP) requires re-engineering to fulfil its new mission. This study surveys existing research associated with the NQPP, reviews NQPP performance, discusses future quality requirements with quality experts, and points to possible future quality programmes for Taiwan. [ABSTRACT FROM AUTHOR]

The Taiwanese economic miracle is over. At the end of the 1980s, changes in macroeconomic conditions forced Taiwanese industry to restructure. While it moved towards information technology, the island became increasingly tied to the mainland. By speeding up the integration of Taiwan with China by means of a China-Taiwan economic zone, President Ma Ying-jeou hopes to restart growth, but the economic and political consequences of the project are causing controversy. [ABSTRACT FROM AUTHOR]

This study examines the development of privatization policy in Taiwan by focusing on the background changes and symposium issues. The background of privatization policy has to do with Taiwan's economic liberalization policy, political democratization movement, and recent changes in the environment. The symposium articles consist of two case studies investigating the privatization implementation issues of two public enterprises and one survey study comparing perception of privatization performance between government officials and private contractors. The study concludes with discussions about lessons and implications of Taiwan's privatization experience. [ABSTRACT FROM AUTHOR]

The article reports on the measures undertaken by the Taiwanese government to help the economy. In June 2008, the government has formed a tax reform committee to identify effective tax reforms. Seventeen proposals were finalised by the committee, including the simplification of the administrative process of levying corporate income tax, individual income tax, and business tax. The substance-over-formality principle was also adopted which directs the tax authorities to rely on the economic facts rather than the legal formality of a transaction.

Abstract: This paper aims to explore the unevenness of spatial development under the rule of the Democratic Progressive Party (DPP) of Taiwan, after the collapse of the one-party dominance of the Kuomintang (KMT) in the 2000 presidential election. In the late 1980s the KMT engineered the rise of big business groups and consortia with the introduction of its neoliberalization project. To remain in power, the DPP regime continued to implement this neoliberalization project to win the political loyalties and donations from emerging business groups and show a dedication to economic development, while resorting to the populist practice of transferring resources to the local society, particularly winning precincts, to consolidate its advantage and further crumble the KMT bastions. Consequently, Taiwan was a “vacillated state”, pulled and dragged between the pro-growth neoliberalization project and calls for a populist redistribution of resources. This resulted in a new political dynamic in which the urban regions were tied closely with the global economic growth while the rural regions were closely tied to domestic resource allocation. As the developmental model of state would predict, this contradictory co-existence of neoliberalism and populism led to a decline in state policy effectiveness. [Copyright &y& Elsevier]

The Europeans regard monetary arrangements as a key element of the overwhelming effort to never again allow hostilities to flare up on their continent. For Taiwan and China, a monetary coordination mechanism may also be appealing in order to eliminate hostilities caused by the Chinese civil war since 1949. Due to certain historical and geopolitical reasons, the impact of a China-Taiwan Economic Union on the world can not be measured by its economic scale only. On the basis of Robert Mundell's earlier proposal and the current development of the European Monetary Union, this paper provides a framework to analyze whether the establishment of a Chinese monetary union (CMU) could be sustained after suffering various economic shocks. We assume that a Chinese central bank coordinates the single monetary policy of the Chinese Economic Area and that China and Taiwan maintain their fiscal independence. An international policy coordination approach is used to simulate possible outcomes if the CMU were to be implemented. The simulation indicates that the U.S. and Japan may suffer welfare losses if China and Taiwan insist on their monetary unification. However, if both the U.S. and Japan accept the CMU, further international policy coordination may help them decrease such kind of losses. The analysis is preliminary but may be helpful in considering the East Asian economic policies. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to develop the context for Taiwanese economic statecraft based on the evolving paths of economic integration within the Association of Southeast Asian Nations (ASEAN) and the less obvious market-driven and complex changes in business supply chains. Taken together the effects of economic statecraft, trade patterns, and investment constitute a "noodle bowl" with many unintended consequences. The effect is to undermine particular policies and initiatives and make the ASEAN Economic Community (AEC) much more porous than its policies suggest. The many inconsistencies between policies and effects should be seen as providing an opportunity for Taiwan to continue its dynamic role in Asian markets and to avoid isolation. [ABSTRACT FROM AUTHOR]

The average global annual growth rate of digital content products has grown exponentially. This is because of the technology advancement, cost reduction, and availability of the enabling technologies, e.g., digital processing, digital storage, and digital telecommunications. The development of the digital content industry (DCI) requires a strong cultural background, creative ideas, respect of intellectual property rights, and telecommunications infrastructure, which are all dependent on government supportive policies. This study summarizes the government policies, progress, and obstacles in the development of Taiwan's DCI and compares these subjects with other countries, including the United States, EU countries, Japan, and Korea. In this paper, Taiwan's DCI opportunities and challenges will be discussed, and strategies and recommendations will be provided, based on Taiwan's unique resources and competitive advantages. [ABSTRACT FROM AUTHOR]

This study examines the application of network analysis to the domain of labor policy in Taiwan. Specifically, it examines the spatial structures deployed and negotiated to achieve collective labor interests within the network of institutionalized power. The dual system of structure and agency are combined in a systematic discussion of policy networks. Notably, the relationship between dependency and resource distribution can be structuralized; however, this relationship is not permanently fixed with regard to labor policy events, which must be understood in dynamic terms. Policy outcomes are determined via dynamic interaction between institutional structures and policy actor behavior. Actor resources and their reciprocal relationships are changed across the events in the diverse network indicators. Different forms of internal spatial interaction between the actors exert influence on the latter's choices, influencing decision-making regarding labor event outcomes. A proposition is developed that integrates network analysis into a power structure framework. Finally, this study proposes that the application of social network analysis should simultaneously consider the plurality of network relationships and the impact of the political context of the power structure of labor policymaking. Network analysis provides a new pathway for reconstructing interaction patterns. The network structure of labor policymaking in Taiwan still conforms to a state-led model. [ABSTRACT FROM AUTHOR]

Taiwan was a typical Capitalist Developmental State (CDS) from the 1960s through the 1980s. In this article the effects of the Asian Financial Crisis and the two political shocks that it sandwiched are assessed. We find that Taiwan's CDS structure has been seriously undermined for political, not for economic, reasons. [ABSTRACT FROM AUTHOR]

In its relations with Taiwan and China, Washington has begun to implement separate dual strategies in order to simultaneously deter unilateral action while balancing out the rival political and military forces of each side. A simple standard strategy just is not sufficient to maintain the status quo. The way to maintain peace is for Washington to keep its role as a moderator between the two sides while preventing both from taking unilateral steps toward goals that would naturally provoke the other. US policy has to mirror the duality of the cross-strait arena by implementing dual balancing and deterrent strategies. It is also imperative that policymakers realize the complexity of the situation so as not to unwittingly provoke either side. This paper is an analysis of the emerging US strategy of deterring both sides of the Taiwan Strait from taking unilateral action while maintaining a balance of military and political forces, and gives some suggestions as to the further development of this strategy. [ABSTRACT FROM AUTHOR]

Analyzes Taiwan's crossstraits economic policy in the 1990s through the use of the state-centered approach. Features of the use of the strong-state paradigm; Features of the economic interaction across the Taiwan Strait; Adjusted exports to mainland China from 1981 to 1994; Taiwan's economic dependence on mainland China.

The article presents an account of Taiwan's efforts to improve relations between Taiwan and mainland China, while pursuing greater economic engagement throughout the Asia-Pacific region and worldwide. The benefits of economic development in the context of globalization and regional integration are emphasized, and the importance of mutually beneficial political and economic arrangements between Taiwan and China is stressed. The Taiwanese government is described as focusing on flexible diplomacy, peace and prosperity.