| Description |
This thesis does a general survey of Taiwan's economic development from 1980 to the present. It evaluates and analyzes Taiwan's economic development using three different theoretical approaches. According to the neoclassical growth theory, economic growth is driven by population (labor force) growth, capital accumulation, and technological progress. From this perspective, Taiwan's economic growth can be analyzed by decomposing the economic growth into labor growth contribution, capital accumulation contribution, and total factor productivity growth. According to the Keynesian economic theory, economic growth in the short run is mainly driven by the level and growth of effective demand. Total economic output (gross domestic product or GDP) is the sum of consumption, investment, government expenditures, and net exports. Therefore, economic growth can be analyzed by decomposing the overall economic growth into its various demand components. According to the Marxian economic theory, capitalist accumulation is driven by the pursuit of profit, and the level and trend of profit rate is the primary determinant of capital accumulation and economic growth. The profit rate can in turn be analyzed as the interaction between the profit share and the output capital ratio. The profit share depends on class struggle and a country's political and economic institutions. The output-capital ratio depends on the level of effective demand and technology. iv The next chapter discusses Taiwan's economic development from the 1950s to the 1970s. It explains how Taiwan accomplished economic development through successive phases of postwar reconstruction, first period of import substitution, export promotion, and second period of import substitution. Chapter 2 uses neoclassical theory to analyze Taiwan's economic growth from 1980 to the present. Chapter 3 analyzes Taiwan's modern economic growth using the Keynesian theoretical approach. Chapter 4 analyzes the movement of the profit rate in the Taiwanese economy using the Marxian approach. Chapter 5 evaluates the importance of the growing Taiwan-Mainland China connection for the Taiwanese economy. Chapter 6 concludes the thesis. |
