Taiwan Economic Development LECTURER: JACK WU JACKWU@NCCU.EDU.TW 吳文傑

How big is Taiwan’s Economy (GDP)? Ranking Country 1 USA 11 Canada 21 Iran 2 China 12 Australia 22 Sweden 3 Japan 13 Spain 23 Norway 4 Germany 14 Mexico 24 Poland 5 France 15 Korea 25 Belgium 6 UK 16 Indonesia 26 Argentina 7 Brazil 17 Turkey 27 Taiwan 8 Russia 18 Netherlands 28 Austria 9 Italy 19 Saudi Arabia 29 South Africa 10 India 20 Switzerland 30 UAE

GDP Per Capita 2012 GDP per capita (nominal) GDP per capita (Purchasing Power Parity) Singapore 51162 60410 Japan 46736 36266 Hong Kong 36667 51494 South Korea 23113 32272 Taiwan 20328 38749 Malaysia 10304 16922 China 6076 9162 Thailand 5678 10126

GDP Per Capita (PPP) world ranking 2012 GDP (PPP) GDP(PPP) 3. Singapore 60410 19. Taiwan 38749 5. Hong Kong 51494 20. Belgium 37883 6. USA 49922 21. Denmark 37657 8. Switzerland 45418 22. UK 36941 9. Canada 42734 23. Finland 36395 10. Australia 42640 24. Japan 36266 11. Austria 42409 25. France 35548 15. Netherlands 41400 26. Israel 32312 18. Germany 39028 27. Korea 32272

Credit Suisse Ranking of Net Wealth of Middle Class 1. Australia 11.Austria 21 Arab Emirates 2. Luxembourg 12.Canada 22. Taiwan 3. Japan 13. France 23. Germany 4. Italy 14.Norway 24.Sweden 5. Belgium 15.Finland 25. Cyprus 6. UK1 16.New Zealand 26. Kuwait 7. UK2 17. Netherlands 27. USA 8. Iceland 18.Ireland 9. Singapore 19.Qater 10. Switzerland 20.Spain

Global Competitiveness Index 1-10 11-20 21-30 Switzerland Norway Australia Singapore Taiwan Luxembourg Finland Qatar France Germany Canada Malaysia USA Denmark Korea Sweden Austria Brunei Hong Kong Belgium Israel Netherlands New Zealand Ireland Japan United Arab Emirates China UK Saudi Arabia Puerto Rico

Income Distribution and Government Debt Gini Coefficient(%) Debt Ratio (%) Singapore 48 111.4 Japan 38 214.3 Hong Kong 53 30 South Korea 31 33.7 Taiwan 34 36 Malaysia 46 55 China 47 31.7 Thailand 40 43.3

Income and Poverty

Top Export Countries Ranking Country 1 China 11 Italy 2 USA 12 Canada 3 Germany 13 Spain 4 Japan 14 Singapore 5 France 15 Saudi Arabia 6 Korea 16 Mexico 7 Netherlands 17 UAE 8 Russia 18 India 9 HK 19 Switzerland 10 UK 20 Taiwan

Top Import Countries Ranking Country 1 USA 11 Netherlands 2 China 12 Italy 3 Germany 13 Thailand 4 Japan 14 Mexico 5 UK 15 Russia 6 France 16 Spain 7 Korea 17 Belgium 8 India 18 Switzerland 9 HK 19 Taiwan 10 Canada 20 Australia

Which Ones are Taiwanese Companies? Foxconn Hon Hai TSMC Formosa Plastic Co. HTC ACER ASUS Trend Micro MASTER KONG WANT-WANT GIANT SYNNEX MAXXIS 85 C ADVANTECH MERIDA D-LINK UNI-PRESIDENT ZYXEL JOHNSON CYBERLINK TRANSCEND DELTA WOWPRIME

Major Economic Indicator of Taiwan Year GDP Per Capita(US$) GDP Growth Rate(%) Average GDP Growth Rate(10 year,%) Unemployment Rate(%) CPI Growth Rate(%) AverageCPI Growth Rate(%) Gini coefficient Foreign reserve(billion US$) 1970 393 11.40 9.4 1.70 3.60 3.4 0.294 1975 978 4.90 - 2.40 5.20 0.312 1980 2385 7.80 9.8 1.23 19.00 10.4 0.277 1985 3290 13.50 2.91 -0.20 0.290 225.6 1990 8124 3.80 7.7 1.67 4.10 3.1 724.4 1995 12918 6.38 1.79 3.70 0.317 903.1 2000 14704 5.80 6.2 2.99 1.30 2.6 0.326 1067.4 2001 13147 -1.65 4.57 -0.01 0.350 1222.1 2002 13404 5.26 5.17 0.345 1616.6 2003 13773 3.67 4.99 -0.28 0.343 2066.3 2004 15012 6.19 4.44 1.62 0.338 2417.4 2005 16051 4.70 4.13 2.30 0.340 2532.9 2006 16491 5.44 3.91 0.60 0.339 2661.5 2007 17154 5.98 1.80 2703.0 2008 17399 0.73 4.14 3.53 0.341 2917.1 2009 16359 -1.87 3.2 5.85 -0.87 0.9 3482.0 2010 18503 4.72 5.21 -0.96 0.342 3820.1 2011 20006 4.07 5.39 1.42 3855.5 2012 20386 1.32 4.24 1.93 4031.7 Source: Directorate-General of Budget, Accounting and Statistics, Statistic Abstract of National Income, Executive Yuan, Taiwan.

Before Takeoff Japanese Colonial Era (before 1945) KMT brought 2 million mainlanders (human capital) to Taiwan, 1949 U.S. Aid (1950-1967)

Golden Years Export expansion policy, Export Processing Zone, 1965-80 Second import substitute policy, 1975- 80 Ten Public Projects, 1974-1979 High-tech industry, 1980- Financial liberalization, 1990-

All Patents Granted in USPTO Country 2012 Accumulated Japan 50677 902998 Germany 13835 360194 UK 5213 146564 France 5386 134641 Taiwan 10646 104954 Korea 13233 103895 China 4637 17284

After Golden Years Open direct investment in China, 1990- Tension between Taiwan and China, 1996-2001 Join World Trade Organization, 2002- Cross-strait Direct Flight, 2008- Sign ECFA with China, 2010-

Current Economic Issues Sluggish wage growth Unequal income distribution High housing price Economic Reliance on China

Real Wage growth Rate 2000-2011 Asian Country Real wage growth rate China 12.1% Taiwan 0% Korea 3.8% Singapore 1.8% Hong Kong 0.8%

China’s FDI Source (2006) Country(area) Number Rank Amount Hong Kong 269555 1 279.7 billion Taiwan 71847 2 43.8 billion 5 USA 52211 3 53.9 billion 4 Korea 43130 34.9 billion 6 Japan 37714 57.9 billion Virgin island 16616 57.1 billion Singapore 15556 7 30.0 billion Macau 10697 8 6.9 billion 11 Canada 9788 9 5.4 billion 12 UK 5359 10 13.9 billion

Table 1 Bilateral Trade across the Strait