|Author Name||MINATO Teruhiro (Osaka Sangyo University)|
|Creation Date/NO.||March 2016 16-J-027|
|Research Project||Historical Study on Japan's Trade and Industrial Policy: From an international perspective|
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The strong growth of the Taiwanese economy from the 1960s to 1970s can be accounted for by two competing theories: market mechanism hypothesis and government-led hypothesis. The purpose of this paper is to explore these two hypotheses from the demand side. We first examine the changes in the Taiwanese industrial structure and demand structure in the high-growth period, especially the external and domestic demand of the gross domestic product (GDP). Next, we review the policies that helped the development of the major industries including the textile industry and the electronic equipment manufacturing industry. Finally, we compare the relative contribution to the rapid export expansion and high economic growth which was driven by the market mechanism with that from the rapid capital formation under government management.