The Economic Impact Analysis of US-China Trade War

The paper aims at analyzing the policy economic impact on Taiwan and providing policy recommendation.There are three purposes of this paper. First, we aim to analyze the advantages and disadvantages of the US-China trade war on Taiwan\u27s economy. Second, we will explore whether the intensification of the trade war will trigger a global financial crisis. Third, we will discuss government’s strategy to arrange and create a conducive environment to welcome the return of Taiwanese entrepreneurs

Productivity Growth and R&D Expenditure in Taiwan's Manufacturing Firms

This study sets out to estimate the impact of R&D on productivity within the private sector, with further analysis of the different impacts of R&D in high-tech and conventional firms. The study also aims to estimate the rates of return on R&D investment and total factor productivity at firm level. Based on a sample of 136 large manufacturing firms listed on the Taiwan Stock Exchange over the period 1994-2000, our findings suggest that Taiwan's R&D investment had a significant impact on firm productivity growth, with output elasticity standing at around 0.18. When the sample is divided into high-tech and conventional firms, the R&D output elasticity in high-tech firms is significantly greater than that of conventional firms. In addition, the average rate of return in high-tech firms is much larger than that estimated in other industries. Our empirical findings further show that although there was a dramatic decline in TFP in 1998 for all selected industries, this nevertheless started to climb again in 1999.