This paper investigates the long-run convergence between imports and exports between India and Taiwan over the quarterly period 2005–2008 and examines the constancy of this relationship. As far as we know, there is no such study in the literature for a diverse sample of developing countries. Past studies have focused largely on the China and India. But in this study we mainly focused on the Taiwan and India as both are the Economic Giants of Asian Continent.
This Empirical study is characterized by different important elements. In the Globalization, developing economies have been increasingly integrated with the world economy. This paper helpful for these effects for Taiwan and India in a dynamic setting to determine if GDP growth is export or import growth-led or vice versa. The empirical results show that uncertainty matters for drawing accurate inference about the causal relationships between growth of GDP, exports and imports. In this study we mainly explain the two countries economic and industrial growth structure in import and export.
In India the Economical growth is more than 50% is based on Agriculture and service industry, whereas in Taiwan more than 50% of Taiwan economy is totally based on the Technology and Manufacturing.
The Economy of India is in the high growth stage; where as the Economy of Taiwan is running on the small pace. In the Year, 2003 the foreign reserve of the Taiwan was more than India’s foreign reserves, so this shows that the Taiwan is also in the strong position. According to the data and tables, shown in this research show the Import and Export between these two countries is increasingly year per year. The products exported to India are totally Technology & Industry based whereas, the products imported from India to Taiwan are the small machinery part or Food Products.
Exports & Imports Value of : By Year Value N.T $1000 Year Total Export Export Re-
Export
Total Import
Import Re- Import
Balance 2002 4,670,403,674 4,507,506,099 162,897,575 3,918,414,842 3,893,680,914 24,733,928 751,988,832
2003 5,172,958,654 4,952,475,993 220,482,661 4,409,977,844 4,383,722,834 26,255,010 762,980,810
2004 6,097,236,115 5,817,800,332 279,435,783 5,656,671,158 5,627,586,457 29,084,701 440,564,957
2005 6,374,493,858 6,084,207,901 290,285,957 5,877,164,292 5,844,590,698 32,573,594 497,329,566
2006 7,279,319,454 6,926,598,601 352,720,853 6,604,336,706 6,568,410,311 35,926,395 674,982,748
Table 5.1【32】
According to the comparison above, the Total Import and Total export of Taiwan is increasing every year .As you seen in the data of every year the number of export is more than the number of imports. So this shows that there are great opportunities in the field of export.
In this paper we try to cover all the Import and Export between these two Economic powers of Asia. We here tried to briefly explain the Political and Economic relations. The economical relationship of India and Taiwan is getting stronger and stronger day by day. The total exports in the year 2002 were 4,670,403,674 while it increases to 7,279,319,454 in the year 2006 which shows a promising business and relations between these two countries. So the conclusion of paper refers to the increasing Trade between India and Taiwan and helped us to concentrate on the especially on the Export and Import. This Study will be helpful for the further research as a exploring Guide of India and Taiwan.
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