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The Reasearch on the Industrial Structure Regulation&Industrial Policy in the Process of Taiwan’s Economic Growth

Author: LuoQiong
Tutor: CaoXiaoHeng
School: Nankai University
Course: Regional Economics
Keywords: Eeonomic Growth Industrial Structure Industrial Policy EffectEvaluation
CLC: F127
Type: PhD thesis
Year: 2012
Downloads: 120
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The reasonable implementation of the industrial policy and the upgrading ofthe industrial structure is an important feature of modern economy operation.Modern economic theory hold that A country or region’s economic developmentexpress not only in the growth of the gross national product,but also reflected inthe adjustment and upgrade of industrial structure,industrial strueture andindustrial policy determines both the level of economic development and thetrend of economic growth, and in the mean time it is restrieted by economicdevelopment level. Under certain conditions,the changes of industrial structureand industrial policy is the foundation and the power of economic growth,whichin turn will bring about corresponding changes in industrial structure andindustrial policy. The economic growth and industrial structure areinseparable.The growth of modern economy is a process in which economicgrowth,industrial structure and industrial policy are in mutual promotion,interaction and consistent development.As the economies in the developing, Taiwan has made great economicachievements in the process to catch up with advanced countries in economicdevelopment,the research on the economic growth and industrial structureadjustment and industrial policy of Taiwan, Not only can over come the limit ofinternal and external economic develop as soon as possible,provide theoreticalguidance and advice to maintain sustained and rapid economic develop,but alsocan provide experience for other developing economies.Based on the overview and synthetical analysis of related researchachievements,this paper,firstly,have a general analysis on the evolution ofindustrial structure in the process of economic growth of the world’s majordeveloped countries,and then,this paper summerizes the characteristics of theevolution of Taiwan’s industrial structure andindustrial policy over sixty yearsafter the war through the related founamental economic theories and common technologies,It is also analysis the overall relationship between the economicgrowth and industrial structure, and the effect of industrial policy on thetransformation of industrial structure, and also be compared with the majordeveloped countries,Finally,on the basis of the above anlysis,it reaches the coreconclusions,further researeh directions are also proposed.The main structure ispresented as follows:Chapter I, which is the part of introduction,explains the researchbackgrounds,purposes,methods and the innovation.Meanwhile, On the basis ofdefining the basic concepts, conducting a systematic review of relevant research.Chapter II is about the basic theory of industrial structure adjustment andindustrial policy. Summarizes the theory about industrial structure and economicgrowth which based on the Western and Japanese economic theory.Chapter III is the international comparison about the changes of industrialstructure in the process of economic growth between countries,such as TheUnited States, Japan and South Korea,to identify the commonalities andindividuality, and get experience and inspiration for Taiwan.Chapter Ⅳis about the evolution process and characteristics’ analysis ofTaiwan’s industrial structure.have a comprehensive review of Taiwan’s industrialstructure and economic operation since the1940s.Chapter Ⅴis the empirical analysis of the relationship between Taiwan’sindustrial structure and economic growth, Using statistical and quantitativeanalysis methods to analyze the overall relationship between the industrialstructure and economic growth.Chapter Ⅵis the formulation and implementation of Taiwan’s industrialpolicy.have a comprehensive review of Taiwan’s industrial policy since the1940s.Chapter Ⅶis the assessment about Taiwan’s industrial policy effects,Including both positive and negative.Chapter Ⅷis the conclusions, prospects and suggestions.From the aboveexaminations,it reaches the core conclusions,relative suggestions and furtherresearch directions are also proposed. Through the analysis of industrial structure and industrial policy in theprocess of Taiwan’s economic growth, reached the following conclusions:a.In terms of industrial structure changes: Overall, No matter what thepercentage of the GDP, or the labor proportion,the proportion of the primaryindustry tends to decline, in the proportion of secondary and tertiary industriestend to rise.b.In terms of the three industries’ contribution rate and pulling rate: as forthe contribution rate,the contribution rate of the primary industries to economicgrowth in the1950s and1960s played an important role, but in the late1970s,thecontribution to economic growth is not obvious, the contribution of the secondaryand tertiary industries to economic growth rate has been at a high level state,isthe main force of economic growth; In terms of the pull rate, the primary industryhave made a good performance in the1970s, became an important force inpromoting economic growth.Before the mid-1980s,Taiwan’s secondary andtertiary industries maintain a high level in the economy pulling rate and showingthe trend of alternating for one another,in the mid-1980s, the tertiary industry hasbecome the first strength in driving Taiwan’s economic growth.c.The relations between the industrial structure and the economic growth:Firstly, in the long run,the relations between Taiwan’s total economic output andprimary industry output structure is in the opposite direction, and the changesabout the secondary and tertiary industries in the long run is in the samedirection;secondly,the faster of the economic growth, the faster of the conversionand adjustment of industrial structure;thirdly,the economic growth depend andlead to the transformation of industrial structure;Fourthly,there exists reciprocalrelationship between economic growth and changes in industrial structure.d.In terms of the industrial policy: firstly, the formulation of industrialpolicy should follow the law of industrial development; secondly, industrialdevelopment should follow the principle of elements comparative advantage,developing in the direction of international market division; Thirdly,establish thecorrect orientation of industrial policy,adjust the corresponding industrial policyobjectives in the different stages of economic developments.

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