Outward foreign investment and export structure: a case study of Taiwan's FDI in Malaysia

As Taiwan's outward FDI was primarily motivated by the relatively lower costs of land and labour in the host countries, one tends to expect that the structure of production and exports in Taiwan would shift toward higher capital and skill intensity. The structure of Taiwan's exports to the ASEAN-4 was concentrated more in higher human and physical capital intensities than Taiwan's total exports to the world. Moreover, Taiwan's exports to the ASEAN-4 were more concentrated on intermediate goods and machinery. A case study of Taiwan's outward FDI in Malaysia indicated that three of the five leading industries that accounted for a large shares of changes on FDI stocks and corresponding export commodities were the same. Pooling estimates also show that FDI has a small but positive impact on Taiwan's exports to the host country. The study further showed that Taiwan's FDI in Malaysia includes mixed tactics of ‘defensive’ and ‘aggressive’ strategies in various industries. In terms of the influence of the presence and economic role of ethnic Chinese on Taiwan's outward FDI, the study showed that the ‘Chinese connection’ has not been a significant factor in determining the industrial distribution of Taiwan's FDI in Malaysia.     

The effect of outward foreign direct investment on home country's export: A case study on Taiwan, 1989–2006

The purpose of this study is to examine the effect of outward foreign direct investment (FDI) on home country's export in Taiwan since the late 1980s. By pooling the time series and cross-section data in a modified gravity model, the study analyzes the effect of outward FDI, both country by country and host groups as a whole, on Taiwan's exports. It is concluded that outward FDI has a complementary effect on home country's export in Taiwan, most significantly evidenced in China-bound investment, which accounted for most FDIs after the 1990s.     

The determinate effects of competences and decision process factors on firms' internationalisation

This study introduces the current situation of Taiwan's financial industries and presents a literature review including competences, competitive advantage, and key factors under the process of the international investment decision, and internationalisation. The study takes a ‘triangulation’ approach that uses both qualitative and quantitative methods in the exploration of the internationalisation of Taiwan financial markets. Sampling targets of the research consist of managers from banks, security firms, and insurance firms in Taiwan. The findings highlight perceptions of factors such as resources, skill, market knowledge, and international investment experience of firms aiding the internationalisation of Taiwan financial industry. Further, this study reveals that firms' internationalisation relates positively to the firms performance.     

The effects of strategic hospital alliances on hospital efficiency

This study examines the effects of strategic alliances on the efficiency of hospitals controlled by the Department of Health in Taiwan. Overall, it is found that the efficiency of the hospitals improved after they formed strategic hospital alliances (SHAs). The results also indicate that smaller hospitals located in competitive areas are more efficient, as exemplified by shorter patient stays, higher occupancy rates, and lower mortality rates. Based on Taiwan's experience, it is inferred that SHAs do improve the performance of the participating hospitals. It is hoped that the results of this study will encourage health policy officials and healthcare organizations in other countries to consider implementing similar strategies for their hospitals.     

Does Taiwan's entry into the WTO truly reduce its agricultural output values?

This study has used the time series data of Australia, China, Denmark, India, Japan, the Netherlands, Norway, the Philippines, South Korea, Spain, and the United States from the World Bank to estimate the agricultural economic shock of Taiwan's accession to the World Trade Organization (WTO). We have adopted the recently developed panel data approach for policy evaluation to construct the annual agricultural growth path of Taiwan, which is mainly based on the cross-sectional correlations between the domestic and international agricultural trade markets in the absence of Taiwan's entry into the WTO. Our results have not only revealed the importance of ex post counterfactual analysis, but also provided empirical evidence that the agricultural economic shock is not as severe as predicted by many ex ante studies. Based on these results, we have concluded that the outcome may have arisen from the slow progress of achieving agricultural trade liberalization under the WTO and the Taiwanese Government's effective adoption of phase-in periods and relative adjustment policies.     

Technology acquisition choices for newly industrializing countries: The case of Taiwan

This article examines the determinants of technology development and acquisition for companies based in a newly industrializing nation. The actual selection of a method for acquiring a technological capability has to be analyzed at the firm level and is influenced by attributes of the technology in question, as well as by the attributes of the technology-receiving organization. This article demonstrates that the selection of a technology transfer method has to be done on a case-by-case basis and provides several criteria. These criteria are, however, conditioned by the economic environment faced by the company, and government policies. Taiwan is chosen as an illustration in this article because it is a country trying to formulate a technology policy for its economy. Its days as a low-cost producer of relatively unsophisticated goods are almost over. Yet the small scale of much of Taiwan's industry, growing technological protectionism, as well as changes in marketing and business organization in principal overseas markets, are some of the constraints on the ability of its companies to reach the cutting edge of technology in most industries. The article concludes by examining the role of the Taiwan government and indicating some policy directions. © 1993 John Wiley & Sons, Inc.     

Foreign investors in Taiwan: Their roles and government perspectives

This article describes the financial liberalization process in Taiwan and evaluates the effects of foreign institutional investors on Taiwan's stock market. Gradual liberalization allowed Taiwan to reap the benefits while reducing the harmful impacts of foreign participation during the Asian financial crisis. Overall, the liberalization policies proved to be effective as the stock market has become more stable and efficient. Foreign institutional investors contribute significant growth to the Taiwan stock market, and will continue to play a sizeable role in its future development.     

An integrative model of customers' perceptions of health care services in Taiwan

As the health care service gets more competitive, health care practitioners and academic researchers are increasingly interested in exploring how patients perceive the quality and value of their care before building up their satisfaction levels and generating behavioural intentions. Drawing some theories from marketing and health care service literature, this study tries to propose an integrative model of customers' perceptions of health care services based on the established relationship among four key constructs (service quality, perceived value, satisfaction, and behavioural intentions). Structural equation modelling is then used to validate the model. As Taiwan's universal health insurance offers every citizen equal financial access to all health care providers, Taiwan offers a good opportunity to study how the patients' perception model is structured. The findings reveal both perceived quality and value as antecedent variables in this model illustrating direct and indirect paths from perceived quality and value to patient satisfaction and behavioural intentions.     

The Taiwan hat industry: Pre-war roots of the post-war miracle

Taiwan's pre-war hat industry was a precursor of the export-oriented living-room factory industries which played a leading role in Taiwan's post-1960 economic miracle. After World War I, success in the global hat trade required quick reaction to ever-changing fashion. Taiwan's hat industry was based on a flexible subcontracting system which could respond quickly to fashion change and ramp up production at short notice. Taiwan's early hat industry has been overshadowed by its larger agricultural exporting industries, but the hat industry itself was, by many standards, large and influential. Evidence suggests that Taiwan's early experience in the hat trade was a key factor behind Taiwan's later post-war success.     

National System of S&T Innovation: Dynamics of Manpower Building in a Catching-Up Economy

This study uses the National System of Innovation (NSI) as an analytical framework and introduces it as a catching-up economic perspective with a focus on Taiwan's current and future manpower environment, including the three basic elements of NSI in relation to science and technology (S&T). This study explores Taiwanese S&T manpower flow and distribution, as well as how the government facilitates the development of the technology network, narrowing the gap between catching-up economies and advanced economies through the NSI analysis. This study also investigates how the NSI factors affect one another, and how the interaction among government policy, the academic system, and the industrial sector promote Taiwan's S&T manpower development. Research conclusions and suggestions are also provided.     

Off-balance sheet activities and cost inefficiency in Taiwan's Banks

In this study, we adopt a stochastic cost frontier method to investigate the influence of off-balance sheet (OBS) activities on the cost efficiency of Taiwan's banks. We estimate and compare cost inefficiency with or without OBS outputs of 46 Taiwanese commercial banks during the period, 1998 through 2001. The conclusions of this empirical study are as follows. First, omitting off-balance sheet outputs in estimating the cost frontier function of banks results in an underestimation of bank efficiency by approximately 5 per cent. Second, large banks are associated with a higher cost efficiency and have an increased ability to develop OBS activities. This is consistent with Taiwan's regulatory policies, which focus on promoting efficiency in the banking industry of emerging markets. Banks with higher employee productivity are also more cost efficient. Finally, we observe evidence of economies of scale in both models with or without OBS specification in Taiwan's bank industry. Economies of scope between loans and OBS outputs are also observed.     

Antecedents of Taiwan Chinese Consumers’ Purchase Intentions Toward U.S.- and Japanese-Made Household Appliances

ABSTRACT

The purpose of this article is to understand the factors influencing Taiwan's Chinese consumers’ purchase intentions toward U.S. and Japanese household appliances. The authors attempt to develop and test a comprehensive model linking such purchase intentions to several constructs including Taiwan Chinese consumers’ openness to foreign cultures, consumer nationalism, product familiarity, traditional cultural values orientation, and product-country image. The result of analysis using structural equation modeling shows that consumer nationalism has a strong indirect effect on purchase intention via the product-country image construct. Taiwan Chinese consumers’ traditional cultural values orientation and openness to foreign cultures have direct effects on consumer nationalism and, hence, are important antecedents in explaining the purchase intentions toward foreign-made goods by Taiwan Chinese consumers. With the growing importance of the Chinese domestic market, this study provides international marketing managers with practical implications in important areas such as market segmentation, branding strategy, and market research and practices in the Chinese consumer market.     

The FTA Music Is Playing in Asia: After ECFA,Will Taiwan Join the Dance?

In the context of stalled multilateral trade negotiations, major trading economies are seeking free trade agreements (FTAs) to secure their market access objectives. Nowhere is this dynamic stronger than in East Asia, where a web of bilateral and plurilateral agreements is stitching together piecewise an Asian free trade area that could plausibly rival the EU and NAFTA trade blocs and where the possibility of a formal pan-Asian agreement has been raised. Taiwan has been largely excluded from this dynamic. However, with the June 29, 2010 signing of the Economic Cooperation Framework Agreement (ECFA) with China, the possibility of Taiwan joining the FTA dance in East Asia would appear to have been greatly strengthened as the advocates had anticipated. This article considers the economic and trade implications of Taiwan's participation versus non-participation in an emerging East Asian trade bloc. We support our analysis with simulations using the GTAP computable general equilibrium model. The article finds that the benefits to Taiwan of participating in such a bloc have increased, as have the opportunity costs of exclusion, since the share of East Asian partners in its trade has risen.     

Trade liberalization in asian newly industrialized countries

Singapore, South Korea, and Taiwan are often perceived as having achieved similar trade patterns; nevertheless, their trade policies and patterns differ in fundamental respects. In this study, three models are considered and different aspects of the trade liberalization policies of these three countries are highlighted. The model of South Korea underscores the significance of product market concentration in restraining real wage growth and contributing to income inequality. The model of Singapore highlights the role of foreign investment in producing manufactured goods for export and in raising real wages. The factor proportions model of a labor-abundant economy adequately describes the Taiwanese liberalization. The model's predictions of rising real wages and no monopoly profits are consistent with Taiwan's declining income inequality.     

British privatization: Evaluating the results

The 24 studies reviewed here reveal that nine of the 13 primary objectives of the U.K.'s privatization program have substantially been achieved. Privatization has reduced the size and scope of government, reduced political interference in management decisions, freed government funds so they can be used in sectors of the economy other than state-owned businesses, created a free market economy, promoted domestic investment, benefited the economy through higher returns on capital invested in privatized businesses, generated new sources of tax revenue, broadened domestic equity ownership and promoted equity ownership among employees of privatized businesses. Most of the research reviewed concludes that privatization has reduced the government's budget deficit; provided consumers with improved service, better quality, more choices, new products and lower prices; and improved the efficiency and performance of privatized firms. Finally, most of the studies reviewed report mixed results regarding the privatization program's success at reducing government control of business.     

Cause mapping of simple and complex marketing strategies

Business-to-business relationships between original equipment manufacturing (OEM) suppliers and customers (brand name buyers) are an often studied issue; however, theoretical and empirical studies seldom focus solely on the suppliers' perspective. This paper examines OEM suppliers' perspectives and reports on the phenomenon of some suppliers choosing single customers while others focus on multiple customers to achieve the adaptive selling as their profit making that cause the parsimonious and complex customer strategies through the empirical studies. The study also uses mental models to analyze two specific cases of OEM suppliers within Taiwan's shoe industry in relation to what kinds of environmental changes that successful managers apply to their parsimonious and complex customer strategies. Mental models are used to map the evolution of these two OEM suppliers' customer strategies, along with their culture, competitive advantages, cooperation relationships, and environment. The study explores these five core propositions to show suppliers to employ different approach to customer strategies, and map the evolution of strategic development of Taiwan shoes companies from the 1970s through to the present day.     

Entrepreneurship,Competitive Strategies,and Transforming Firms from OEM to OBM in Taiwan

This article analyzes how entrepreneurs create wealth and capabilities in the early stages by practicing original equipment manufacturing (OEM) and later on transcend to original brand manufacturing (OBM). The author deliberately selects three cases of Taiwan's firms (Johnson Health Technology Corporation, CVC Technology Corporation, and HTC Corporation) to study firm growth and firm transformation by incorporating concepts from research fields of entrepreneurship, strategic management, and leadership. How Taiwan's firms thrive from transforming to create own brands and how they deal with ensuing issues of branding dilemma offer a useful lesson for latecomer economies.     

Optimal trade,industrial, and privatization policies in a mixed duopoly with strategic managerial incentives

Abstract

This paper examines optimal trade, industrial, and privatization policies in a home-market model of mixed international duopoly with strategic managerial incentives. Under linear demand and constant marginal costs, the optimal degree of privatization is shown to depend crucially on cost and demand parameters and on the availability of strategic trade and industrial policies. If both firms are equally efficient, optimal trade and industrial policies drive out the foreign firm and the privatization policy loses its effect on national welfare; however, if the home firm is less efficient, then full privatization combined with an import tariff and a production subsidy is optimal for the home country, while an export subsidy is optimal for the foreign country. If trade and industrial policies are unavailable and if both firms are equally efficient, full state-ownership, which drives out the foreign firm, becomes optimal; however, if the home firm is less efficient, only partial privatization is optimal, The state-ownership share is increased if either the market size grows, the home firm's efficiency increases, or the foreign firm's efficiency decreases. Further, the paper demonstrates the potential conflict between privatization and trade liberalization policies.     

Branding Taiwan for tourism using ‘Decision Making Trial and Evaluation Laboratory’ and ‘Analytic Network Process’ methods

Countries should have a clear, credible, appealing, distinctive image in a wide and diverse global marketplace. Nation branding is a good method for countries to survive and prosper in a wide and diverse global marketplace, and many countries have embraced the concept. Nation branding is a sophisticated endeavor, which includes economics, tourism, culture, and political destiny. This paper addresses the problem of branding Taiwan's tourism using the decision making trial and evaluation laboratory approach combined with the analytic network process method to evaluate the performance criteria of branding Taiwan. The results show that ‘festival’ is the critical criterion for branding Taiwan for tourism.