Selected International Rules of Foreign Direct Investment in the Telecommunications Sector and Its Influences on Taiwan\u27s Telecommunications Legislation

In past decades, the most significant contributor to the booming global economy was the development of cross-border transactions. Specifically, foreign investment has expanded rapidly, becoming an increasingly important factor in host economies and in the international community. Also, foreign direct investment (FDI) has increased rapidly for a substantial period and covering a wide spectrum of industries. Moreover, foreign investment capital generally will spur economic growth and create better living standards in particular countries. Despite the benefits of FDI, many developing countries fear that by opening up their markets to competition and foreign investment without any restrictions, they will lose control of strategic industries such as the telecommunications sector. Nonetheless, FDI brings technological skills, funds and market competition to the telecommunications industry. In response, many countries create measures and policy requirements to control and guide foreign investment to correspond to their economic and developmental strategies. From an economic standpoint, international investment usually benefits each side but its related legislations internationally and locally are still inchoate. Meanwhile, some multilateral agreements on investment have been negotiated through the Organization for Economic Cooperation and Development (OECD) and World Trade Organization (WTO) with built-in restrictions on the time frames for implementation and execution. This article will focus on the tension between the goals of the proposed OECD and WTO multilateral investment agreements and the host countries’ economic strategies

Selected International Rules of Foreign Direct Investment in the Telecommunications Sector and Its Influences on Taiwan\u27s Telecommunications Legislation

In past decades, the most significant contributor to the booming global economy was the development of cross-border transactions. Specifically, foreign investment has expanded rapidly, becoming an increasingly important factor in host economies and in the international community. Also, foreign direct investment (FDI) has increased rapidly for a substantial period and covering a wide spectrum of industries. Moreover, foreign investment capital generally will spur economic growth and create better living standards in particular countries. Despite the benefits of FDI, many developing countries fear that by opening up their markets to competition and foreign investment without any restrictions, they will lose control of strategic industries such as the telecommunications sector. Nonetheless, FDI brings technological skills, funds and market competition to the telecommunications industry. In response, many countries create measures and policy requirements to control and guide foreign investment to correspond to their economic and developmental strategies. From an economic standpoint, international investment usually benefits each side but its related legislations internationally and locally are still inchoate. Meanwhile, some multilateral agreements on investment have been negotiated through the Organization for Economic Cooperation and Development (OECD) and World Trade Organization (WTO) with built-in restrictions on the time frames for implementation and execution. This article will focus on the tension between the goals of the proposed OECD and WTO multilateral investment agreements and the host countries’ economic strategies

Taiwan, ROC Regional Operations Center in Asian-Pacific

The purpose of this study is to examine the Taiwan, ROC policy for establishing Taiwan as a Regional Operations Center in Asian-Pacific market. The study addresses five questionsthe definition of a regional operations center, services the center will provide, reasons for the government policy, significance of the policy, and the expected results of the policy. The study addresses the subject from a microeconomics, macroeconomics and international trade perspective. Finally, the authors present their conclusions and recommendations.http://archive.org/details/taiwanrocregiona1094532087NARepublic of China (Taiwan) Navy authorRepublic of China (Taiwan) Air Force authorApproved for public release; distribution is unlimited

China's Embrace of Globalization

As China has become an increasingly important part of the global trading system over the past two decades, interest in the country and its international economic policies has increased among international economists who are not China specialists. This paper represents an attempt to provide the international economics community with a succinct summary of the major steps in the evolution of Chinese policy toward international trade and foreign direct investment and their consequences since the late 1970s. In doing so, we draw upon and update a number of more comprehensive book-length treatments of the subject. It is our hope that this paper will prove to be a useful resource for the growing numbers of international economists who are exploring China-related issues, either in the classroom or in their own research.

Economic impacts of China's accession to the World Trade Organization

Ianchovichina and Martin present estimates of the impact of accession by China and Chinese Taipei to the World Trade Organization. China is estimated to be the biggest beneficiary, followed by Chinese Taipei and their major trading partners. Accession will boost the labor-intensive manufacturing sectors in China, especially the textiles and apparel sector that will benefit directly from the removal of quotas on textiles and apparel exports to North America and Western Europe. Consequently, developing economies competing with China in third markets may suffer relatively small losses. China has already benefited from the reforms undertaken between 1995 and 2001 (US$31 billion) and trade reforms after accession will lead to additional gains of around$US10 billion. Accession will have important distributional consequencesfor China, with wages of skilled workers and unskilled nonfarm workers rising in real terms and relative to farm incomes. Reduction in agricultural protection may hurt some farmers. Possible policy changes considered to offset these impacts include reductions in barriers to labor mobility and improvements in rural education. The authors estimate that the removal of the hukou system would raise farm wages and allow 28 million workers to migrate to nonfarm jobs. If, in addition, there is an increase in education spending that results in a percentage point increase in the annual skilled labor growth rate, approximately 32 million farm workers would leave their job for jobs in the nonfarm sectors. These policies would not only facilitate the evolution of China's economy toward high-technology manufacturing and services, they have the potential to much more than offset any negative impacts of accession on rural wages and rural incomes generally.Labor Policies,Economic Theory&Research,Trade Policy,Environmental Economics&Policies,Banks&Banking Reform,Environmental Economics&Policies,World Trade Organization,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Economic Theory&Research,Trade and Regional Integration

Comparative Development Strategies of South Korea and Taiwan as Reflected in Their Respective International Trade Policies

This paper examines the interplay of economic development and trade policies in South Korea and Taiwan. Although many differences exist between the two states, both have identified economic development as a central national policy goal linked explicitly to national security, even national survival. Both have targeted international trade as a key means of promoting economic development. Thus, trade policy, broadly defined, has served as one of the principal components of their economic development strategies. Of course, many other factors impinge upon trade policy formation - the national imperatives against which all policy must be weighed, economic opportunities and constraints, the domestic political process through which societal interests and pressures are managed, and the international political process through which competing interests are accommodated - but far more than in most other developing states, trade policy in Korea and Taiwan has given primacy to economic growth

Economic Reforms and Constitutional Transition

This paper investigates the relationship between economic reforms and constitutional transition, which has been neglected by many transition economists. It is argued that assessment of reform performance might be very misleading if it is not recognized that economic reforms are just a small part of large scale of constitutional transition. Rivalry and competition between states and between political forces within each country are the driving forces for constitutional transition. We use Russia as an example of economic reforms associated with constitutional transition and China as an example of economic reforms in the absence of constitutional transition to examine features and problems in the two patterns of transition. It is concluded that under political monopoly of the ruling party, economic transition will be hijacked by state opportunism. Dual track approach to economic transition may generate very high long-term cost of constitutional transition that might well outweigh its short-term benefit of buying out the vested interests.constitutional transition, economic reform, division of labor, debate of shock therapy vs gradualism, debate of convergence vs institutional innovation

Foreign direct investment and poverty reduction

Foreign direct investment is a key ingredient of successful economic growth and development in developing countries--partly because the very essence of economic development is the rapid and efficient transfer and cross-border adoption of"best practices."Foreign direct investment is especially well suited to effecting this transfer and translating it into broad-based growth, not least by upgrading human capital. Growth is the single most important factor in poverty reduction, so foreign direct investment is also central to achieving that important World Bank goal. Government-led programs that improve social safety nets and explicitly redistribute assets and income might direct more of the fruits of growth to the poor. But these are complements--not alternatives--to sensible growth-oriented policies. And growth is needed to fund these government-led programs. Moreover, the delivery of social servicesto the poor--from insurance schemes to such basic services as water and energy--can clearly benefit from reliance on foreign investors. In short, foreign direct investment remains one of the most effective tools in the fight against poverty.Labor Policies,International Terrorism&Counterterrorism,Environmental Economics&Policies,Payment Systems&Infrastructure,Economic Theory&Research,International Terrorism&Counterterrorism,Environmental Economics&Policies,Foreign Direct Investment,Governance Indicators,Poverty Assessment

Industrial Policies and Growth: Lessons from International Experience

The application of industrial policies (IP) to direct resources to industries considered preponderant in achieving growth has been the chosen road by many emerging economies to tackle underdevelopment. Subsidized loans, variable taxes and differentiated tariffs are frequently used. Because of the successful experiences of some South Asian industrial policies, other emerging countries feel tempted of replicating the formula. However, these should be sure first that their governments have the necessary competencies. There are also two questions to ask on the role of IPs in the growth of these countries: first, Were IPs the dominant factor in the countries’ accelerated growth? The neoclassical approach offers an alternative explanation, that the Asian miracle was mainly the result of strong macroeconomic policies implemented. The second question is: Can the problems of some Asian economies in the 1990s be explained by the prolonged application of IPs? This article finds evidence to support that economic growth was due to strong macroeconomic foundations, such as fiscal discipline, controlled inflation and adequate real exchange rate levels. These variables were the driving forces that created high levels of saving and investment. On the other hand, the implementation of IPs is difficult in a globalized world where the regulations of international trade have become very important.