從合作到夥伴關係: 台約關係如何促進台灣在約旦的投資 - 政大學術集成

全文

(1)‫بسم هللا الرحمن الرحيم‬ International Doctoral Program in Asia-Pacific Studies (IDAS) Collage of Social Sciences National Chengchi University Doctoral Dissertation. 立. 政治大. ‧ 國. 學. From Co-operation to partnership:. How has the Jordan – Taiwan relationship facilitated Taiwan investment in Jordan. ‧ sit. io. n. al. er. Nat. Advisor: Dr. Tsai Chung-min. y. Student: Moh’d Ali Khawaldeh. Ch. engchi. 09 January 2018. i n U. v.

(2) ��-�*•§��--�±·�··. National Chengchi University International Doctor Program in Asia-Pacific Studies. �:Sc. o��:f. Dissertation Eligible paper. Moh' d Kuawaldeh tJ·-'f JR.1.tFaJ £. PIT��. Topic : From Co-operation to Partnership: how has the Jordan-Taiwan relationship facilitated Taiwan investment in Jordan. ��5#N�: ��N��ttW -tifi �f.!J. -'ll:-�«'- -.Jc. � � lia % � �¥. � ,,�/f"'-� El -ilt a��. 政治大. 4t �. Approved by the Oral Examination Committee. 立. t�x.;:ff-t�� l ft� l. ‧ 國. 學. Oral Examination Committee. ‧. -�iN n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. �� -I. ;}§��/Advisor. � f.I £ 1£ I IDAS Director. I. '-. Fif.ft/Dean. tp. .f. ��N 11\ -=t� ' " 1& � � '�'" ..,d;.. �. �. I b7. �. A. 1. 8.

(3) Topic of contents Contents. II. List of Tables, Figures, Appendixes. VI. List of Abbreviations. V. Acknowledgments. VI. Abstract. VII. Chapter 1: Introduction 1.1 Background of Study 1.2. Methodology 1.3. Population and sample 1.4. Research questions. 立. 政治大. ‧ 國. n. engchi. ii. y. sit. i n U. Chapter 4: Jordan's economy elements and features 4.1 Introduction 4.2. Jordan features 4.3. The basic components influencing the Jordanian state 4.4. The needs of the local Jordanian market 4.5 Chapter Conclusion. 50 50 51 53 55 57 58 59 60 61 63 67. er. io. Ch. ‧. Nat. Chapter 3: Taiwanese economy and challenges 3.1. Introduction 3.2. The political relationship between China and Taiwan. 3.3. Economic relations between China – Taiwan 3.4. Trade between China and Taiwan 3.5. Trade agreements between China and Taiwan 3.6. Trade relations and investment in Taiwan. 3.7. The possibility of partnership with TPP 3.8. Jordan - Taiwan relations. 3.9. Taiwan's economy challenges 3.10. Advanced fields in Taiwan 3.11. Chapter Summary.. 16 16 32 35 44. 學. Chapter 2: Literature Review 2.1 Taiwan in the Global Economy-Past, Present, and Future 2.2 Taiwan's Economic, Opportunities and Challenges 2.3 Determinants of Economic Reform in Jordan 2.4. Jordan’s national employment strategy 2011-2020. al. 1 1 8 13 14. v. 70 70 72 78 86 90.

(4) Chapter 5: Case Study (Jordan National Company for Operation and Training) 5.1. Introduction 92 5.2. Trainees Services 95 5.3. Type of Study and Methodology 97 5.4. Study Contents 101 5.5. Chapter Conclusion 113 Chapter 6: Conclusion: Partnership Strategy 6.1. Introduction 6.2. The concept of strategic partnership 6.3. Economic strategies through history 6.4. The benefits of the strategic partnership 6.5. The reasons for the strategic partnership 6.6. The goals and benefits of the strategic partnership 6.7. Partnership Forms 6.8. Benefits of Jordan - Taiwan, Partnership 6.9. Elements of the strategy 6.10. Implications 6.10. Summary. 立. 115 115 116 116 116 117 118 118 119 126 127 128. 政治大. ‧ 國. 學 131 143 144. ‧. Bibliography Appendix I. List of Interviewees Appendix II. Questionnaire. n. er. io. sit. y. Nat. al. Ch. engchi. iii. i n U. v.

(5) List of Tables Table 5-1 Time frame 95 Table 5-2 Members of the study population trainers, administrators and trainees 99 Table 5-3 The study sample distribution by age group variable 101 Table 5-4 The study sample distribution by educational qualification variable 101 Table 5-5 Employment experience (years of service) variable 102 Table 5-6 The study sample distribution by function category variable 102 Table 5-7 The study sample distribution by variable Job Title 103 Table 5-8 The study sample distribution by Gender variable 103 Table 5-9 The study sample distribution by social status variable 104 Table 5-10 The National Company for operation and Training in light of the important for rehabilitation workers 107 Table 5-11 The national company possesses the right qualifications for the rehabilitation of workers in Jordan 109 Table 5-12 Paragraphs provide analysis of the infrastructure of the Center for Information 111 Technology. Table 5-13 The role of the National Company for operation and training by training and rehabilitation workers to raise the workers level 112. 立. 政治大. ‧. ‧ 國. 學. n. al. Ch. 5-10 5-11 5-12 5-13. er. io. The total answers for Table The total answers for Table The total answers for Table The total answers for Table. sit. y. Nat. Figure 1 Figure 2 Figure 3 Figure 4. List of Figures. engchi. iv. i n U. v. 108 110 111 113.

(6) List of abbreviations IIT. Internal Industrial Trade. CSSTA. Cross strait Trade in Service. ECFA. Economic Cooperation between China and Taiwan. TPP. Trans – Pacific Partnership. NET. National Company for Operation and Training. TFP. Total Factor Productivity. DFI. Direct Foreign Investment. MG. Market Group. 政治大. 立Micro economic Competitive Index. MICI. VTC. y. sit. Middle East and North Africa. al. n. ALMP. io. NES. Jordan Armed Forces. er. MENA. Global Strategy Forum. Nat. JAF. Information and Communications Technology. ‧. GSF. ‧ 國. ICT. Free Trade Agreements. 學. FTAs. National Employment Strategy. Ch. i n U. v. Active Labor Market Programs. engchi. Vocational Training Corporation. v.

(7) Acknowledgments Looking back to my military career, I should say that I have been one of the lucky few to be sent abroad for pursuing postgraduate degrees. Studying a International Doctoral Programme in Asia Pacific Student (IDAS) at National ChengChi University (NCCU) in Republic of China (Taiwan) is truly an honor for me. First of all, I am so grateful to my supervisor Professor Dr. Tsai Chung-min, for his expert guidance and continued support towards my Doctoral Program. Without his recommendation and his follow up, my thesis could not have been reached this level. Prof. Tsai suggested me to cover my studies the external environment surrounding being show how Partnership between Jordan and Republic of China (Taiwan) can facilitated Taiwan investment in Jordan, I am grateful to Professors Li-Chung Yuan , Gazi AL-Znahrah for being my examiners, spending time to read my thesis, and giving me so many insightful and useful comments.. 政治大. In addition, I want to acknowledge the Ministry of National Defense of Hashemite Kingdom of Jordan for providing me full support to study at NCCU, Also I would like to extend my heartfelt thanks to Republic of China (Taiwan) being a State supported a lot for me personally and for my family, who enjoyed the study and knowledge of the close-up and wonderful habits about kind and helpful people. Without a doubt, I have to thank my wife, my son Raad and daughters Rahaf, Rama, Mira for their encouragement, endless support and patience. We cannot forget the wonderful time we had during our 20 months of stay in Taiwan, which was such a special and sweet experience in our life. I would also want to thank father and my brothers and sisters for concern about me. Finally, I want to tell my mother in Heaven that 'I have made it!’.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. vi. i n U. v.

(8) Abstract This paper searched for the range of appropriateness of Jordan as a suitable chance to enhancing the Taiwanese economic investment opportunities, when adopting the basis of partnership concept which is expressed as the obligation to provide and facilitate all the capacities and capabilities of the partner to be used by the other partner, instead of cooperation concept that means that the cooperating party provides assistance optionally without any obligation between the parties, in the light of suffering most countries from current economic depression which is resulting from different economic crisis, made some countries to search for the new economic strategies and concepts considering as solutions in different international strategic environments, on condition of they are characterized with its capacity to achieve the equality and fairness doctrine between the partner countries. Taiwan is the most important advanced entity in both economic and administrative areas locally and internationally, but it is facing the political pressures because of the circumstances with China, in addition to the negative economic reactions resulting from the regional competition with Asia developing countries. Adopting the strategy of partnership in founding the companies in the friendly and allied nations instead of adopting the current used approach of cooperation, it makes hopes to develop the opportunities of investment outside, and it processes and reduces some of the restrainers and more by implementing the concept of globalization.. 立. 政治大. ‧ 國. 學. ‧. Achieving any strategy and applicable concepts requires making extensive studies, introducing integrated strong plans, and choosing the most viable environment which contributes in accepting and supporting the idea. Jordan is particularly one of the hopeful countries in terms of economy growth and stability, it seeks to achieve its objectives, coping with the development and advancement, and it has a strong relation with Taiwan. The question arises and needs the answer: Is Jordan considered as an opportunity to enhance the opportunities of increasing the investment of Taiwan when adopting the basis of partnership?. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Keywords: Partnership, dominance, commitments, investment, cooperation.. vii.

(9) 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v.

(10) Chapter 1 Introduction 1.1. Background of study The world is currently witnessing many variables on all aspects of life, whether political, economic, security, and social. All of these have had a negative impact on the life of the communities, whether rich or poor, or developed or underdeveloped.. 政治大. When planning to build an economy in any country, there must be a fundamental. 立. principle of policy, which policy makers use to provide reduce space. the final brief to. ‧ 國. 學. leadership for institutional work, has some of the elements of success, and supportive of the national economy, such as the stability, security, sustainability, seize opportunities, and self-. ‧. reliance.. y. Nat. io. sit. The most important thing that distinguishes the decision-making power politics is the. n. al. er. diversity, so that the available options are multi-directional and hubs, which are not only in the. Ch. i n U. v. context or in a single format. We are here to reiterate the argument of not laying the eggs in one. engchi. basket. That gives the plan the necessary flexibility to meet the variables, in unexpected events and reduces the size of negative effects resulting. Some countries are reluctant to exploit the opportunities available to them, in order to shed light on their respective economic strength, although it has the basic rules for implementation of projects commensurate with size and power, since fear of new experiences and the results expected from its failure, and to avoid collision with the major economic powers. Despite the fact that these countries have the preference of many, and are capable of.

(11) competition, they would prefer to live in the templates made by others. Thus, they are affected significantly and are expected to receive a shock in the case of others failure Taiwan is one of the democratic States in Southeast Asia. It is a well-developed country with unique features comparable to the developed countries in terms of organization and planning. It has large concrete effects in various aspects of life, and it is able to reach the world through utilizing opportunities which were small or few. It can be only through a distinctive Partnership away from highly competitive environment among regioninal countries such as. 政治大 economic domination of China立 is clear at regional and global levels.. China, Japan and the Republic of South Korea, Singapore and Hong Kong. As well as the. ‧ 國. 學. Chances of researching Mechanism and evaluation of various international environments studies showed that world is directing towards the Middle East because it has a. ‧. promising future, despite what is happening now in the region as a temporary situation. In light. y. Nat. sit. of decreasing success chances in Africa because of global competition, domination and. n. al. er. io. intervention of the colonial powers, and lack of stable environment as a result of wars and. i n U. v. ethnic conflicts there. Also Latin American countries are affected by several factors such as. Ch. engchi. social movements, role of Catholic Church, foreign interference, gangs, organized crime, trafficking, etc. Most the Middle Eastern countries are currently suffering from instability, and those who have been affected by the so-called the Arab Spring, and terrorism. With exception of Jordan, that enjoys a high level of stability. This is linked to its ability to stay alive despite lack of natural resources, scarcity of potential, but it was able to achieve its goals at global level, where it became greater participation in United Nations missions for peacekeeping and security.. 2.

(12) Taiwan has close relationship with Jordan. The cooperation between them over security and military and diplomatic exchanges in advanced level where extends to nearly thirty years. The majority of Jordan's population is young ambitious, despite the high unemployment, its up higher than 10%. Unemployment rates among young people indicate there is a real problem over the transition from educational institutions to the workplace, the reason for this is due to lack of harmonization of the outputs of the education system to the needs of the labor market and not be linked to economic policies, educational policies which require a long-term. 政治大. planning. As Taiwan's economy is suffering from a labor shortage.. 立. Nutshell, that cooperation between the two countries could contribute to solving the. ‧ 國. 學. problem of both parties, so that solved the problem of unemployment in Jordan and offset the decrease in employment in Taiwan. In addition, the possibility of exploiting Jordan, such as the. ‧. opening of the gate to the outside world, and move from the level of a regional competition to. y. Nat. sit. the global level, with the possibility is considered as an opportunity to highlight Taiwan's. n. al. er. io. economy independently, especially in light of competition from other countries to take. i n U. v. advantage of this opportunity, where China is planning to create a Chinese university in Jordan during 2016.. Ch. engchi. This subject will be studied from two sides and several chapters include the theoretical aspects to collect sufficient amount of information about the elements of the success of Taiwan’s economy and challenges and difficulties facing it, the specifications of Jordan’s available potential, the best strategy suited to overcome these difficulties, and enhance the pros. i.e. the practical side will discuss the Jordanian National Company for Operation and rehabilitation capabilities.. 3.

(13) 1.1.1. The impact of global changes on the economic partnership The acceleration of the current events on the world diversity in dealing with these events and the mechanism of directing the correct paths, so that it fits the needs of the countries of the partnership and alliance, being simple terms showed a disparity in interests in prioritizing countries, and the emergence of Multipolar World Order. Finding new variables as a whole represented as follows: Shedding the United States to Middle East oil in early 2015, the importance of the US withdrawal from the Middle East and. 治政大by Arab Spring, Russia's role in the concept of national security of those countries affected 立 give priority to the countries of East Asia, with an attempt to address the Chinese threat, change. toppling the system unipolar, The global economic crisis and high indebtedness of the United. ‧ 國. 學. States of America.. bipolar or multi polar showed the kind of. ‧. Competition in terms of world order. hesitation in the decision-making, especially at the international level as a result of opening up. y. Nat. er. io. sit. of the world and break down of barriers between countries where the contributed technological elements, social media, global concept, international terrorism, to show the inability of any pole. n. al. Ch. i n U. v. on the uniqueness in the making, or leave any obvious imprint on world affairs, And events are. engchi. full of the examples are endless, for example, Russia did not succeed in the foreseeable future in the war against terrorism of fighting Islamic state in Syria and Iraq, they have adopted the defense of the Syrian regime who used excessive force against their own people as well as to not be seen as global alliances among nations. But the record of the international scene over the prominent role that could be played by second grade countries, or moderate states promising in decision-making, which are endless, Jordan, for example, the advantage of adopting moderation in dealing with all countries of the. 4.

(14) world, is characterized by an excellent relationship with both the United States, , Russia, France, China, Britain, as well as the rest of the world foreign and Arabic, this explains the large number of posts Jordan presides over in humanitarian missions by UN peacekeepers, where did happen no body raised objections over Jordanian participation on the territory of any of the affected countries. Jordan also strengthened its position through its contribution effectively in the fight against terrorism, Jordanian political leadership to adopted a democratic approach which seeks to achieve a better life for its citizens in spite of suffering from a lack of natural. 治政 available in the society in which its majority of enthusiastic大 young people to work, where there 立. resources, the scarcity of potential, poor government policies in the utilization of human energy. is no linking education output with the needs of the labor market.. ‧ 國. 學. Use of force can no longer reap the benefits in handling the international level, it is not. ‧. considered a language of understanding between the countries of dialogue or influencing others, for example, China, despite the strength of its greatness in the global scene, particularly on the. y. Nat. er. io. sit. economic side, but it does not reflect the conviction of the international community as a result of adopting the political ideology of socialism is preferable in most countries of the world.. n. al. Ch. i n U. v. While on the contrary, the international community respects the countries that pursue. engchi. democracy despite their small size and strength in the international arena, for example, Taiwan as a model for democratic approach, which represents development and modernity, both in terms of building state and social role or economic concept that stands out in the banks, technology, and industry sector. The variables in the global scene leads us to understand the difference in the language of dialogue and interaction between countries no longer dependent over any relationship whether for some reason, from security, political, economic or, many examples in this area, but the most. 5.

(15) important, when Britain became reluctant to US involvement in wars, including the war against terrorism. Where it hesitated to give consent to participate in the war against the Islamic state in Syria and Iraq, citing the need for the approval of Parliament, even though it did not wait for when the United States launched its war against Iraq. Hence, the moderate states and promising, such as Jordan and Taiwan, it must be transmitted from the local and regional level to the global level in light of the contradictions between international political poles. Taking advantage of the opportunities available to them. 政治大 seclusion and isolation in the 立 local and regional competition for a starting point for a global.. and they are gaining international respect. Each of which can rely on each other to get out of. ‧ 國. 學. Jordan, which is characterized by promising young people, in spite of increase in unemployment, but it can provide qualified labor, which provides a solid platform through. ‧. reformist rehabilitation programs at the national level through the National Company for the. sit. y. Nat. operation and rehabilitation, which has huge potential in rehabilitation at the regional level. er. io. where it was able to rehabilitate hands working for some of the Arab Gulf states and other. al. iv n C U are able to cooperate with Jordan the ingredients Jordanian shining gateway h etontheg world, c h i they n. countries. In contrast, Taiwan can get out of the regional competition to the world by exploiting. being alike to provide qualified labor, which is expected to cover the shortfall in manpower in Taiwan. 1.1.2. Purpose of study The study is hoped to achieve inclusiveness and expansion, which is available through the provision of multi-disciplinary subject. In addition to the theoretical concepts of partnership to make sure of desired results. In-depth study of political economy as a science is able to respond with the requirements of countries in general in light of regional and international 6.

(16) variables. In this, the, study will search for how to enhance the chances of success in the economic side of Taiwan, and contribute to the emergence of its work and its effects on the international arena, in addition to knowledge of new methods and approaches which are capable of achieving transparency openness to the world. The study shows the need to focus on the concept of partnership and its ability to achieve the desired targets with utmost interest and its impacts on Taiwan's economy, with consideration on the motives and reasons as well as the necessary requirements to apply the principle of economic partnership.. 治政大 the concept of partnership, with addition to study the most appropriate strategy to deal through 立 The study appears sorts of opportunities for States to move forward into the world. In. emphasis on the show proofs and evidence based on sound science, and the study cover the. ‧ 國. 學. following topics: (1) The information and data availabing the modern scientific methods. ‧. analysis helps to reach the best options and best suited for studying the realities of Taiwan's economy, and the achievements as well as challenges and overcome them, and to increase the. y. Nat. er. io. sit. chances of success available. (2) Potential opportunities for Taiwan in world including the Middle East generally, and Jordan specifically which are studied extensively with account. n. al. Ch. i n U. v. values and concepts of economic partnership primarily. (3) show the importance of built-up. engchi. relationship on the principle of partnership between Jordan and Taiwan in order to highlight Taiwan as an independent entity economically, with a focus on the alleviation of the dominance of the economically developed countries, both regionally and internationally, and the possibility to get out of the vicious circle of insularity and to live within the confines and control from other countries. Examine the possibilities of practical application of the theoretical aspects of the study to conduct the test on aspects which help to achieve the goals of the concept of. 7.

(17) strategic partnership, enhance their chances of success by emphasizing the advantages available to Jordan as an important strategic partnership, which distinguish it from other countries. 1.2. Methodology In this section, concepts that are related this study are displayed and explained. The main purpose of this chapter is to facilitate the readers to understand the research design and analysis of framework in this study. It deals with study subject; problematic research; research questions; goals and objectives; case selection; methods; outline of chapters. 1.2.1. Outline of chapters. 政治大. 立. Both the Jordanian side or Taiwan so as to promote convergence in the theoretical. ‧ 國. 學. concept, to answer questions, the study at hand, which explains in detail the most important. ‧. components, and the main points, that must be considered when embarking on the study of all. sit. y. Nat. of the required elements, so that provides research credibility and acceptance in based. io. er. propositions on sound scientific foundations, and documented facts, and even be integrated research aspects as much as possible there will be a screening of the theories and practical. n. al. Ch. i n U. v. proposals even elevate to the level of the recommendations that come out of the study. That is. engchi. meant here that the application of aspect will receive a share of attentions, where they will be allocated a whole chapter to this goal. After reviewing the previous chapters, I find that the third chapter focuses on the study of Taiwan's economy in terms of the historical era that went through, and how it has affected this era in the composition of the economy and highlight came into existence. In addition to what is the most important stages and developments experienced by the Taiwanese economy? Taking into negative effects resulting from the rest of the other elements, such as the political, 8.

(18) security, social. Taking into account the challenges faced by the economy at the local, regional, international. Chapter four will be discussed in the Jordanian component in terms of the possibilities available in terms of stability factors and erudition, openness to the world, in addition to the features that characterize the Jordanian economy. What are the available international links, Jordan has with the rest of the world or international gatherings, and the roles that can be provided on a local level, regional, and international? And to identify the measures taken to. 政治大 through the facilities provided.立 How Jordan over availability of appropriate manpower for the improve Jordan's economic performance, and encourage foreign economic investment in Jordan. ‧ 國. 學. workers, and jobs needed in order to encourage foreign investor in Taiwan on foot to go to Jordan reassuringly.. ‧. Chapter five looks at the practical side in testing the efficiency of the Jordanian labor. y. Nat. sit. Can you keep up with the requirements established companies on the principle of partnership. n. al. er. io. between Jordan and Taiwan, and here is a sample of the National Company for operation of the. i n U. v. graduates of National Study Company for Employment and Training (NET). This helps to. Ch. engchi. create a better investment environment that encourages progress towards it. It will be taking as study case. Chapter six specializes in the proper economic relationship linking Taiwan and Jordan, and what is the strategy best suited to this relationship. With an emphasis on the historical background of the Jordanian relations - Taiwan, in all fields, especially in the economic side, and to identify the challenges faced by this relationship. In addition to identifying the best strategic elements of the application and the development of the concept of the relationship to. 9.

(19) strengthen all economic respects with the study considered types of Taiwan-based companies are currently in Jordan. 1.2.2. Research selection. Find the problem in the possibility that Taiwan will be able to exploit the opportunity to invest in Jordan based on the principle of partnership in order to facilitate Taiwan investment in Jordan, based on the reliance of strong relations with the countries that has advantages be in terms of opportunity if utilized properly. The search for the real investment opportunities,. 治政 a higher degree of economic benefits. Especially in light of大 the intense competition in the East 立 achieve the aspirations of the countries in order to achieve the privacy returning them to obtain. Asian region with the neighboring countries, which are trying to dominate clearly on the. ‧ 國. 學. region's economy? The most important political component is links between China and Taiwan.. ‧. That China still considers Taiwan part of it. And it stands against any attempt to link the political or the establishment of political relations between any country and Taiwan.. y. Nat. er. io. sit. The deal to exploit this relationship on the principle of economic partnership between Jordan and Taiwan requires a clear strategic approach. This strategy is clear for both parties so. n. al. Ch. i n U. v. that they are able to enhance the positives and exploitation features and expand capacity, and. engchi. reduce the negative effects resulting from the various challenges and overcome difficulties. Those are currently representing obstacles to facilitate Taiwan investment and convert it to the pros to improve the economic level. The principle of partnership enhances the desired economic stability, being considered important for both sides of the partnership is not limited to one party or the other, as in the case of the adoption of the principle of cooperation. The need for this principle can be exploited properly can provide a great benefit to the economy of Taiwan as an opportunity to achieve. 10.

(20) enhanced economic ties. But this concept can only be achieved through the study of the other features of the partnership. Thus the partner has to understand any amendments or additional efforts to achieve the desired goal. Based on this, the study identifies the problem of the research in the relationship between the ability of Taiwan's economy to read the possibility of a partnership with Jordan as an opportunity to facilitate Taiwan investment from the following aspects: a.. The possibility of the Taiwanese government to read the real Jordanian data. 政治大. component in economic terms and the establishment of the economic relationship between them on the basis of their partnership.. 立. Possibility of the Jordanian government in response to the basic requirements for. 學. ‧ 國. b.. the adoption of principle of participation with the Taiwanese government to exploit the. c.. ‧. resources of the state properly.. Taiwanese governments have the right to facilitate Taiwan investment and. y. Nat. er. io. 1.2.3. Qualitative method.. sit. emerge on the international scene through the role Jordan can provide.. al. n. iv n C U of social sciences, is that, it This study presents the emphasis h eonnqualitative g c h i research. uses the ‘conversational’ writing style that directs the readers in stimulating their interest in research and focuses on a more integrated role of research. It provides a balanced and accurate approach, covering a whole range of qualitative methodologies and standpoints in this area, including network coverage as a tool in facilitating research. After providing theoretical concepts and historical perspective, data analysis, research evaluation. The use of Realistic examples throughout social science provides both practical and theoretical information, helping readers to understand abstract ideas better and apply them to their own research. The qualitative 11.

(21) method is the best method for condensing complex ideas into information able to be understood by the layman. In this study, the preference for adopting qualitative tools, is that the conversational style will help readers to understand broad issues into segments where a complete picture of the concepts and its utility in the bigger view would result in moving the people in power towards achieving this study into policy reality. This employment of qualitative methodology is a testament to the fact as to how abstract methods and ideas can help in translating into meaningful policy which the author. 政治大. intends to achieve and that is why this methodology is being utilized.. 立. 1.2.4. Interviews and documentary analysis.. ‧ 國. 學. Opinions and experiences from those who specialize in the issues surrounding economic. ‧. side (e.g. economist experts) are essential to this study. The interview results provide a more in-. sit. y. Nat. depth analysis than mere document analysis and literature review; they also generate important. io. er. data and information which cannot be found in other methods such as archives, documents and media. For example, the motivation of government departments can be obtained through. n. al. Ch. i n U. v. interviewing Taiwan’s commercial Representative in Jordan; to collect documents, archives and. engchi. to conduct interviews, one field trip was made to Jordan. Documentary analysis includes finding significant information embedded in the documents of relevant issues. Information related to this issue is obtained from documents such as memos, records, government reports, archives, and policy statements. In addition, existing studies will also be used to support the empirical evidence. The survey in this study is intended to answer the certain question, while the interviews are to answer investigatory questions. The purpose of using the Qualitative method in this study,. 12.

(22) in particular, produces strong inferences of variables analyzed. Moreover, the questionnaire items in this study using the type of close-ended questions with answers in standardized categories based on Likert scaling generates data that reflect a positive or negative evaluations of the object type of open-ended questions, work interview that allow for this analysis of a variety guide psychological processes that spontaneously. Questionnaire was used so that the search and realistic and practical, and access to large amounts of information that can be collected from a large number of people in a short period of time in a relatively cost effective way.. 治政 the questionnaire items in this study are also using大 close-ended type of questions with 立. answers in standardized categories based on Likert scaling generates statements reflecting. ‧ 國. 學. positive or negative evaluations of the object Open-ended type of questions employed as the. ‧. interview guide which allow this subject area to analyze a diversity of psychological processes that came spontaneously and simultaneously at facial expression when the interviews are being. y. Nat. er. io. sit. directed. Qualitative data required for this type of questions allow us to examine questions not only of content but also of intensity, style, mannerism. In other words, we can examine not only. n. al. Ch. i n U. v. what was said, but how it was said (Carol Sansone et al. 2004, 175). 1.3. Population and sample. engchi. Tranquility is one of the most important factors that human endeavor particularly in the case that tries to face a new experience. Because the Taiwanese part submitted to try a new type of economic concepts must be an element of stability. Despite the different important elements of a starting point for the establishment of projects in partnership with Jordan. The conviction does not provide a theory with data only, but that it is generated by a test for this component. Given the importance of testing the suitability of the Jordanian investment environment,. 13.

(23) particularly in the component that is disturbing for all advanced East Asian countries, that is shortage labor. In spite of the theoretical background provides the ability in qualifying for employment through the Jordanian National company of employment and Training in Jordan. But that does not prevent the holding of the test applied on a sample of workers, graduates, and staff training, formal institutions polarized graduates. To gather information, the sampling method purposefully used to clear people over the age of 18 years old. While for the sample number. 治政 size mode is to 8 percent of the margin of error at the 95% 大 confidence level in each area. It will 立 needed to the survey, by employing online sample calculator surveysystem.com size. Sample. be selected 75 samples from various categories. That their answers vary and provide a clearer. ‧ 國. 學. picture of qualifying for the ability of this company to bring out qualified workforce, can. 1.4.. ‧. contributory to get the desired results. Research questions. y. Nat. io. sit. The core issue of the study is to understand how Taiwan's capabilities state can be an. n. al. er. intervening variable when responding to exploit Jordan’s features as advantages in facilitating. Ch. i n U. v. Taiwan’s investment. The variable interference is that responding to exploit the advantages of. engchi. Jordan, to facilitate Taiwan investment the literature mentioned above refers to the difficulty within the East Asia region under Chinese intervention and intense competition among East Asian countries. Based on the mentioned concepts that are discussed current literature, the research questions as below: 1.. Can both Jordan and Taiwan exploit the advantages of each other, through. establishing partnership, in order to facilitate their investment opportunities?. 14.

(24) 2.. In light of intense competition in the East Asian region, can Taiwan get out of. the heavy effects of economic dependence on one market, for its economic growth, in order to enhance Taiwan’s investment opportunities? 3.. Is Jordan considered a suitable opportunity, such as a gateway to Taiwan to. facilitate investment in the Jordanian market? 4.. What is the appropriate strategy for Taiwan to facilitate investment through the. Jordanian case?. 治政 components of investment in Jordan practical ways?大立 5.. How and what cases examines the suitability of employment as one of the basic. 6.. In which areas does Taiwan perform better or has an edge over its competitors,. ‧ 國. 學. thus enabling its foothold over the Jordanian market?. The benefits which Jordan will be endowed through this economic partnership. ‧. 7.. with Taiwan in the coming future?. y. Nat. io. sit. Will Taiwan be able to utilize the Jordanian market as a gateway for its products. into the Middle East and other regional markets?. n. al. Ch. engchi. 15. er. 8.. i n U. v.

(25) Chapter 2 Literature Review This chapter covers all aspects of the study by analyzing some previous studies that will hopefully provide the current study, some important topics, with a focus on the study of scientific methods, and the mechanisms in place in each of the different studies mentioned, highlighting all the points, whether positive or negative, trying to deal with it and maximize the pros and take advantage of them through this study, achieving accuracy in terms of. 治政大contain several important topics research. Search will be divided into several Chapters that 立 inclusiveness and diversity. Four previous studies were selected due to the variety of the. closely related to the contents of the main research: Chapter III Taiwanese economy and. ‧ 國. 學. challenges, Chapter IV Jordan’s Capabilities, Chapter V Study Case of the National. ‧. Company for Employment and Training (NET). Chapter VI Partnership Strategy. 2.1 Taiwan in the Global Economy- Past, Present, and Future.. y. Nat. er. io. sit. In this paper, the author wanted to show that in spite of the small size of Taiwan, it has big hopes over their economic future. Whatever it influenced the development of economic and. n. al. Ch. i n U. v. political events in Taiwan and formed by the geographical location relatively small island in the. engchi. center of the north-western side of Asia and the Pacific. Taiwan is surrounded by many of the major countries in the world such as China in the west, and it is the most densely populated country with the third largest land area (although one of the lowest per capita gross national product of countries) in the world. Japan is in the northeast of the country, the second largest country in the world in terms of economic size (GDP level) and standard of living (GDP per capita level). To the east off the Pacific, there is the United States, the largest economy, with the third largest population, Zone's fourth-largest and sixth largest GDP in the country per capita in. 16.

(26) the world. In addition to these three major powers in the Pacific, Indonesia is now down southwest, with the fourth largest population in the world. Located between these two giants, those who tend to side with the Chinese attitude of chauvinism and irredentism tends to look at Taiwan to be a very small state. To cover the issue in detail it has been divided into a study subjected to the eight main parts. 2.1.1. Taiwan is an important Country in the Global Economy. In this section the author touched upon the question of whether Taiwan is "small" in the. 治政大is at a higher rank in comparison the volume of production and export elements, and Taiwan 立. global economy. It is shown that either, the population size and the level of GDP per capita, or. with other countries in the world. Taiwan's central positions in the north-eastern side of the. ‧ 國. 學. Asia-Pacific region lure the Europeans, the Chinese, the Japanese and the Americans to this. ‧. island.. In the second section, the author tries to answer the question about the size of Taiwan's. y. Nat. er. io. sit. economic output in the global level and tries to highlight that Taiwan is not a state smaller in size, in many aspects compared to other countries. Although Taiwan comprises of only 36,000. n. al. Ch. i n U. v. Sq. km, ranked 113, it is about the size of the Netherlands. The level of GDP in 19th place is in the 86th percentile.. engchi. Thus, the overall economic activities exceeded in any of the Asean countries, Portugal, Mexico, Sweden, Denmark, and not less than Belgium and Argentina bit. Few people realize that the economic size in Taiwan is up to 80% of its counterpart in India, and 75% of that of Russia and Australia. GNP per capita, ranked 25th, in 81 %, and is comparable to some OECD countries such as Portugal and Spain. If fifty-five other “smaller” member countries of the United Nations, not listed in the 1997 World Development Report, are considered, Taiwan’s. 17.

(27) area and population percentage will improve to the 40% and 79 %, respectively. In the field of international trade, Taiwan’s achievement is indeed more staggering. The Taiwanese economy advanced steadily from exporting agricultural and processed goods (rice, sugar, canned foods, etc.) to low technology manufactured goods (textile, metal manufactures, machinery), and then to high technology manufactured goods (electronic products, electrical machinery products, information and telecom products, etc.). In the 1960s, Taiwan was the number one mushroom and asparagus-exporting country to the world market. By 1986, Taiwan produced the world's. 治政大 electronic calculators, telephones, etc. 立. largest number of computer terminals, printed circuit boards, monitors, recreational boats,. 2.1.2. An overview of early Taiwanese history from an international perspective.. ‧ 國. 學. In this section the article reviews Taiwanese history with emphasis on the interactions among. ‧. these peoples during the past four hundred years. Taiwan’s geographical position also determines its historical relations with the surrounding countries before 17th century. Taiwan. y. Nat. er. io. sit. was initially inhabited by nine ethnic groups of Malay - Polynesian origin. While some claim that Chinese population on Taiwan may be traced back to the third century (230 A. D., the. n. al. Ch. i n U. v. Period of Three Kingdom), the Han people began arriving in the western part of Taiwan from. engchi. the coastal area of southern China. They were fishermen, pirates, criminals, or tax evaders. There were also Japanese pirates (Vertente, et al., 1991, 49). Most of them made no efforts to settle permanently, and the Ming government at that time never extended its rule on Taiwan (Vertente, et al., 1991, 34). However, the Dutch, eventually, expelled the Spanish from Taiwan in 1642 and controlled the northern and southern parts of the island. The shortest distance from Taiwan to China is only 110 miles, and so Taiwan has been often influenced by events in its neighbor. In 1661, the Manchus overthrew the Ming government, a foreign tribe that invaded. 18.

(28) China from the north and established the Ch’ing Dynasty. Ming’s defeated general, Kung (Koxinga), fled to Taiwan and drove away the Dutch. The family of Cheng ruled Taiwan and expanded its territory in the southern part of Taiwan, while fighting with the Manchus, for 23 years from 1662 to 1683. During this period, trade with other countries, except China, flourished. Taiwan then came under the Qing government, which lasted 212 years in Taiwan from 1683 to 1895. The Qing government ruled Taiwan with indifference, and continued the discriminatory and prohibitive rule of the Dutch colonial system with added “decadent. 治政大only major cities, and its rule did flatland areas of western Taiwan. The government controlled 立. feudalism of -24; 1980, 118-246). By the end of its rule, its territory had expanded to the coastal. not extend to the vast mountainous areas and the eastern parts of Taiwan.. ‧ 國. 學. Being keenly aware of its limitations, for almost one hundred years the Qing. ‧. government banned immigration and emigration between Taiwan and the mainland, lest people should run into the mountains and revolt against its rule. Thus, Taiwan was isolated from China. y. Nat. er. io. sit. and other part of the world for 78 years from 1683 to 1760. Despite the precautions, the settlers frequently rebelled against the Manchus. The Taiwanese economy expanded only slowly and. n. al. Ch. i n U. v. its trade was confined exclusively to China. Only after the mid-19th century when the English. engchi. and France forced open the ports of Taiwan (Vertente, et al., 1991, 136-137), other European powers followed, and Taiwan re-entered the world trading system (Su, 1986, 34-35; Huang and Chen, 1995, 312, 321). At the end of the first Sino-Japanese war, China ceded Taiwan and the Pescadores to Japan “in perpetuity” by the Treaty of Simonoseki in 1895. After crashing the short-lived Democratic Republic of Taiwan established by the local people, for the first seven years, the Japanese still had a hard time in eradicating the sporadic armed rebellion against its rule.. 19.

(29) In fact, it was only in 1930 that the Japanese administration, for the first time in Taiwanese history, actually controlled and integrated Taiwan with iron fists. By the 1920s, Taiwan had been placed into the Japanese economic domain exclusively and was trading almost entirely with Japan. Ironically, under Japanese colonialism, Taiwan started modern economic and social development, building the foundations for a rapid post-war economic growth. Japanese. 治政 Nationalist Republic of China in China was overthrown by 大 the communist People’s Republic of 立. influence continued even after WWII. Similar to the Qing Period in the 17th period, the. China in 1949, and the defeated General Chiang Kai-shek fled to Taiwan where he established. ‧ 國. 學. the Republic of China on Taiwan (although he pretended that he was still the ruler of China).. ‧. China was off- limit for the Taiwanese from 1949 up until the end of the cold war in the late 1980s (Klintworth, 1995, 28). At the same time, China was isolated economically and. y. Nat. er. io. sit. politically from the global economy. As we will see in details below, during this cold-war period Taiwan was able to ally with Japan and the United States and to form a trade triangle. n. al. Ch. i n U. v. with these two powerful countries. Thus, it catapulted itself to rapid economic growth.. engchi. After the death of Chiang, the authoritarian regime of Taiwan started to thaw, culminated in the lifting of 38-year-old martial law in 1987 (Hsiao, 2000) and the democratic election of the first president in 1996. The termination of the “Period of Mobilization for Suppression of the Communist Rebellion” in 1991 also ended almost the half-century old hostility with China. The event also coincided with China’s reform and open-door period from 1989 until now (Ishida, 2000, 277279). This stimulated the Taiwanese outbound foreign direct investment in China and. 20.

(30) negotiation between the two countries. When the world experienced the end of the cold war in 1991, Taiwan entered the new era of globalization. 2.1.3. The Taiwanese economy before the 19th century. This section examines briefly the Taiwan in the global economy before the 19th century. The Dutch as well as the Spanish formally colonized Taiwan from 1624 to 1662 to trade with China and Japan. The Kingdom of Cheng followed from 1662 to 1683, and traded with the Japanese, the English, and others, but not with China and Holland. Ch’ing conquered Taiwan in 1683 and held it until 1895. From 1683 to 1760, Taiwan. 治政大 Taiwan traded exclusively with was virtually under the autarky system, and from 1760 to 1860, 立. China. Taiwan was re-introduced to international trade after 1860, only to be ceded to Japan in. ‧ 國. 學. 1895. The modernization of the Taiwanese economy and society came during the Japanese. ‧. period after 1895.. 2.1.3.1 The Dutch Period - Global Trade in the 17th Century.. y. Nat. er. io. sit. The original purpose of the Dutch and the Spanish in coming to Taiwan was to use it as the trade entrepot between China and Japan. The Taiwanese economy was already export-oriented. n. al. Ch. i n U. v. in the 17th century. As early as the second half of the 16th century, Europeans, Chinese, and. engchi. Japanese were known to come to Taiwan for either transferring commodities to the third countries or for trading with the Taiwanese aborigines with agate, cloth, salt, copper, etc. for buckskin (Nakayama, 1959, 24-25). In order to trade with China, the Dutch colonized the southern part of Taiwan in 1624. Another important trading partner under the Dutch regime was Persia. To Persia, Taiwan exported tea and much of its sugar produced.. 21.

(31) 2.1.3.2. The Cheng Period - Continuation of Global Trade. In 1662, after being defeated by the ascending Ch'ing dynasty, the Ming general Cheng Ch'eng - Kung and his troop fled to Taiwan, drove away the Dutch, and established the Kingdom of Cheng (Chang, et al., 1996) or the Kingdom of Formosa, as was called by the British. The Cheng government adopted the Dutch economic system. Its major concern was to "return to China," rather than developing Taiwan for the benefits of the Taiwanese. The. 治政大area for travel to and trade with The Ch'ing government also closed and banned the coastal 立. government welcomed trading with all countries except China and Holland (Chou, et al., 1959).. Taiwan, although illegal trade relations between Taiwan and China persisted.. ‧ 國. 學. 2.1.3.3. The Ch’ing Period - from Autarky to the Bilateral Trade and Development of. ‧. Taiwanese Capitalism.. The Ch'ing government conquered the Kingdom of Cheng in 1683. To avoid future. y. Nat. er. io. sit. insurgency against China using Taiwan as a base, it proclaimed a strict ban of immigration from the coastal cities in China to Taiwan. Trade between both sides of the Taiwan Strait was. n. al. Ch. i n U. v. restricted and discouraged. The policy changed several times after 1732 and was revoked only. engchi. in 1760 (Su, 1980, 128-129; Su, 1986, 26). Before 1860, various Taiwanese export associations controlled most of Taiwan's trade with China. After 1860, they lost to competition from foreign traders, especially the British, who set up trading houses in Taiwan. The old-fashioned export associations simply could not compete with the Western management system. Although the profits in coastal trading were very high, about 30 percent per annum on average, due to political instability in China and market fluctuation, the trading was highly speculative and risky, and many ventures went bankrupt.. 22.

(32) 2.1.4. Postwar Taiwan in the Global Economy. In this section the article shows that Taiwanese agricultural production reached its apex and ranked very high in the world by the end of the 1930’s, and massive industrialization started in earnest during that time with the help of resources imported from Japan, China, and Southeast Asia. After WWII,47 the Chinese Nationalist (Kuomintang, KMT) Government confiscated and combined Japanese-owned firms and banks, and converted them into 50 or so public enterprises. Non-Taiwanese speaking Chinese bureaucrats and managers replaced non-. 治政大 base left over by the Japanese. new industries, the government had to rely on the old industrial 立. Taiwanese speaking Japanese capitalists. Lacking resources and technical ability to engage in. At the end of the war, the Japanese left behind basic metal, chemical, and other "heavy". ‧ 國. 學. industries, which were relatively capital intensive in those days. Most raw materials for these. ‧. heavy industries had to be imported, and their finished products had a limited market in the wartorn Taiwanese economy. Thus immediately after the war, the KMT government had difficulty. y. Nat. er. io. sit. in deciding whether to spend scarce capital and precious foreign exchange to restore the war damage and to maintain these white-elephant industries (Lin, C. 1968, 296).. n. al. Ch. i n U. v. However, internal and external political developments around 1949 and 1950 altered the. engchi. picture virtually overnight. The civilian and military industries built by the Japanese in Taiwan to take advantage of resources in South China and the South Seas to fight the Allied Forces were now utilized by the KMT government to fight Chinese communists in the defense of Taiwan. Essentially the KMT perpetuated the Japanese-controlled wartime economy and industries (Hsiao and Hsiao, 2000a; Twu, 1975, 499), though on a larger scale due to massive U.S. aid which supported the influx of Chinese refugees and 600,000 Chinese soldiers at that time (Hsiao and Hsiao, 1996).. 23.

(33) Taiwanese firms remained small and fragmented, and "a broad movement from below upward" was also severely limited. Until the end of the 1970s, banks and financial institutions, insurance, stock exchange, education, transportation, communication, utilities, public media, etc. were either partially or completely restricted. Nowhere could Taiwanese small-and-medium enterprises (SME) enter the businesses of even local transportation, newspapers, shipping, aviation, gas, electricity, etc. But there are important differences in the postwar period. The Japanese had exploited Taiwan’s agricultural and industrial resources without Taiwanese. 治政大 they also left behind physical Nevertheless, when the Japanese left Taiwan in 1945, 立. initiative, and capital and technology were almost completely under their control.. plants and the people who assisted them in managing and operating the plants. More. ‧ 國. 學. importantly they left behind technical know-how, new skills, human capital, and a whole set of. ‧. social and economic infrastructure. In addition to an extensive irrigation system, effective farm organizations, pervasive educational system, massive electric generating facilities, extensive. y. Nat. er. io. sit. transportation and communication network (Hsiao and Hsiao, 1996, 219-221), they also left behind the changes of customs and habits for modern industrial society, such as appreciation of. n. al. Ch. i n U. v. manual labor, propensity to innovate, the habit of punctuality, the concept of law and order,. engchi. respect for ruling by law and following instructions. In other words, the social, cultural, and psychological environments for economic take-off, despite some of them were undoubtedly coerced by the colonial government for the sake of the mother country and military purposes, were already created in the 1930s and the early 1940s. Using the modern terminology, Taiwan’s “institutional reform” was completed long time before the end of WWII. The reform enabled the prewar rapid development of agriculture and industry, and also has been essential, but often ignored in the literature, to the postwar rapid economic growth.. 24.

(34) Other important differences are foreign influences and international markets. The U.S. advocacy of free market and free trade, and the U.S. influence on KMT government policies through the U.S. Aid Program, nurtured the Taiwanese small-and-medium enterprises (SMEs) (Hsiao and Hsiao, 1996, 238-239). The rapid rise of postwar Japanese capitalism ironically stimulated the Taiwanese entrepreneurs and helped the Taiwanese SMEs. The postwar technological innovations of product-lifecycle commodities promoted Taiwanese enterprises. In terms of trading practices, however, there is an important similarity to. 政治大. the prewar situation. Until the early 1980s, foreigners, especially Japanese trading companies, have dominated the trading business.. 立. Major Trading Partners.. 學. ‧ 國. A.. United States and Japan are the two largest trading partners throughout the post-war. ‧. period until the end of the 1980s. Japan was the largest export market for Taiwan until 1966. Japan's share in total Taiwanese exports ranged from 60% in 1955 to a mere 8.4% in 1998.. y. Nat. er. io. sit. After 1967 the United States became Taiwan's largest export market. The U.S. share of total Taiwanese exports ranged from 49% in 1984 to 29% in 1992. Since 1990, Taiwanese exports to. n. al. Ch. i n U. v. Hong Kong, as the entrepot to China, have exceeded exports to Japan. In 1999, Hong Kong's. engchi. share was 21% and Japan’s share only 10%. Up to 60% of Taiwanese exports to Hong Kong were re-exported to China. Like the United States, Taiwan had a hard time breaking into Japanese domestic markets. Despite Taiwanese efforts in attaining a diversification of trading partners, Singapore is the entrepot to the ASEAN countries, and of West Germany, which is the gateway to Europe, and of others remain almost unchanged, although exports to these countries have accelerated since 1985 (TSDB, 2000).. 25.

(35) This means that trade with these countries has increased only at the same pace with the trade with Japan and the United States. Throughout the 1980s and the 1990s, Taiwan was one of the most active exporting counties in the world. The total exports in 1980 were about US$ 20 billion, ranking 20th among the 133 countries listed in WDR, and in 1995 were about US$ 112 billion, ranking 21st in the world. B.. Taiwan, Japan, and the United States Nexus. The trade volume and the deficits with both countries from 1952 to 1974 become. 治政大 of the U.S. government. invisible when the scale is in billions of dollars. After 1988, exports to the United States slowed down under the watchful eyes. 立. under the Omnibus Trade. Competitiveness Act passed in the U.S. Congress in 1988 (Hsiao and Hsiao, 1995). At the same. ‧ 國. 學. time, imports from the United States increased considerably, narrowing down the bilateral trade. ‧. surpluses.. C. A Pacific Trade Triangle. There are several characteristics of the Taiwanese. y. Nat. er. io. sit. economy in the postwar period: (a) Taiwanese trade relies very heavily on the United States and Japan. Taiwan relies more on the U.S. markets for exports, and on Japan for imports. (b) In the. n. al. Ch. i n U. v. 1980s, Taiwanese trade with both the United States and Japan bloomed significantly. Its. engchi. increase in exports to the United States was paralleled by the increase in imports from Japan and, to a lesser degree, from the United States. (c) After 1968, Taiwan has persistently had real trade surpluses with the United States and trade deficits with Japan, although the overall trade balance with all traded partners is consistently positive since 1976. (d) Taiwan imports intermediate goods and raw materials mainly from Japan and exports manufactured goods mainly to the United States. These triangular relations among Taiwan, Japan and the United States are the backbone of the rapid growth of the Taiwanese economy.. 26.

(36) D.. On Sustained Growth.. This is the answer to the important question how Taiwan's outward oriented strategy has been sustained. It is due to special geographical and historical circumstances. Taiwan was already an export - oriented country under the Japanese regime. The Taiwanese were very much accustomed to the notion of "production for exports" for living and profits. In the early 1960s, the postwar rapid economic development is the continuation of the prewar agricultural and industrial development.. One of the major hurdles of an export business is international. 治政大 also proved successful for products. This venue of marketing through foreign companies 立 marketing. A country may produce goods, but may not find a market in which to sell the. conducting trade with the United States and other countries. Opening trade with industrial. ‧ 國. 學. countries is effective in increasing the total factor productivity (TFP) of a developing country.. ‧. 2.1.5. Direct Foreign Investment and Economic Growth. This Section shows that, after a postwar interruption, Taiwanese industrialization continued, especially after the mid-1960 when. y. Nat. er. io. sit. the Pacific trade triangle among Taiwan, Japan, and the United States was formed. The trade triangle sustained the rapid Taiwanese economic growth. Seeing Taiwan's success, Korea. n. al. Ch. i n U. v. followed suit, along with other developing countries, China and the ASEANs in the 1980s. In. engchi. any case, as with trade relations, Japanese and American investments have dominated DFI in Taiwan from 1966 to 1995. While investment from Europe is also increasing, after 1995 “other sources” of foreign investment have exceeded all others. The main areas in the “other sources” category are British territories in Central America. As the Taiwanese economy matures, it has started investment in foreign countries. The spurt of outward investment occurred after the mid1980s, mainly due to dollar depreciation against the New Taiwan dollar and yen, rising wage rates and labor shortage in Taiwan, and the lifting of martial law in 1987 that was followed by. 27.

(37) acceleration of economic and political liberalization, which in turn invigorated environment protection activities and labor movements. In 1999, Taiwan’s outward investment was about 80% of its inward direct foreign investment that year. 2.1.5. Trade and Investment in China. The enmity between Taiwan and China separated both countries from 1949 to 1987, when the 38-year long martial law was lifted. While China started attracting trade and investment from Taiwan after its implementation of the reform program in 1979, the Taiwanese government. 治政大materials through third countries, imports of some 50 Chinese agricultural and industrial raw 立. lifted its strict restriction on travel to China only in 1987. In 1988 Taiwan granted indirect. and only after 1990 indirect exports and indirect investment were permitted. Indirect contact. ‧ 國. 學. with China made official statistical data hard to collect. Taiwanese investment in China has. ‧. been not only increasing alarmingly, but also becoming so large that it consists of almost onethird to more than one-half of the Taiwan’s total outward investment in recent years consist of. al. er. io. 2.1.6. Taiwan and the Global Economy in the 21st Century.. sit. y. Nat. 44% of total outward investment from 1991 to 1999.. n. iv n C U This Section was helped by the inward from Japan and the United h edirect n gforeign c h i investment. States, especially in the 1970s and the 1980s. During the past 100 years, the Taiwanese economy has followed the classical case of development: It developed from the traditional feudal society to modern agricultural development. It went through the typical stages of exports of agricultural and processed goods, and then industrial development through the phases of import substitution, export promotion, and high-tech industrialization. In fact, the “Taiwan miracle” already started in the prewar period (Hsiao and Hsiao, 2000b). Due to an influx of the Chinese refugees, government mismanagement of the economy, and wartime mobilization to 28.

(38) fight against the Chinese communists, the Taiwanese real GDP per capita recovered to the prewar peak only in 1963 (at $1,612).93 After the transition period, the economy took off to steady growth in the mid-1960s. It grew faster than any country in Asia including Japan. Likewise, by 1990, in terms of nominal GNP per capita, Taiwan came much closed to Spain and Portugal, its former colonial powers. Eventually, Taiwan (at US$ 12,333, TSDB, 2000, 332) surpassed Portugal (US$ 10,690) and came very close to Spain ($14,080) in 1998 (World Bank, 2000, 231). If Taiwan continues its. 政治大. current track of progress, it is not inconceivable that Taiwan may even surpass the Netherlands. 立. 學. A.. ‧ 國. and Japan.. Competitiveness Indexes.. Taiwan’s 1999 ranking in the eight categories are Labor, 2nd, Openness, 3rd,. ‧. Technology, 4th, Government, 5th, Finance, 6th, Management, 7th, Infrastructure, , and. y. Nat. sit. 8rd Institution. In response to the financial crisis from 1997 to 1998, Taiwan’s openness. n. al. er. io. improved considerably. So also did its finance sector, to some extent. Among the Asian. i n U. v. countries, Taiwan is well-prepared for the next phase of the new economy of. Ch. engchi. information technology (EPA, 2000, 105). Its computer hardware production in 1998 ranked third in the world, next only to the United States and Japan. As much as 80% of families in Taiwan own cable TVs, even exceeding that of the United States. Taiwan’s labor performance is consistently the best among the 59 countries, including work ethic (4th), unemployment insurance (5th), social welfare system (6th), etc. (WEF, 1999, 205). This may be the reason that Taiwan can still attract massive inward foreign direct investment even though its wage rate is higher.. 29.

(39) Taiwan’s “Institutions” have the worst performance. According to WEF’s national competitiveness balance sheet, the culprits are product liability (36th), judiciary independence (36th), organized crime (37th), legal corruption (37th), and litigation costs (41st). Although Taiwan’s “Infrastructure” has been improving during the past years, it still ranked 23rd in 1999, mainly due to the lack of private investment in infrastructure (31st), road indicator (41st), and cellular telephones (42nd). Other liabilities include foreign access to capital markets (56th), government influence (58th), and insider trading (58th).. 治政大 of the “market growth index 5.02%, among the 59 active countries in the world. In terms 立 Taiwan faired exceptionally well in this prediction: 4.29%, only second to Singapore,. (MG),” which is the predicted growth rate times the size of the economy to measure each c. ‧ 國. 學. contribution to world economic growth, Taiwan ranked 14th. Instead of the competitive Survey. ‧. of company CEOs, a new index, the “microeconomic competitive index (MICI),” which measures the microeconomic foundations of economic development, was substituted in 1998.. y. Nat. er. io. sit. For this, Taiwan was ranked 19th in 1999. In general, the most important indexes are competitiveness and growth, both of which Taiwan ranked near the very top.. n. al. Ch. i n U. v. B. Economics and Politics with China. Final remarks.. engchi. Geography and history. determine the economy and politics, and politics and economics are closely interwoven. The tremendous growth of Taiwan’s trade and outward investment is in China in the 1990s. Taiwanese firms are the second largest foreign investors in China, next to Hong Kong, in the early 1990s, and are probably the largest investors throughout the 1990s if Taiwanese indirect investment through Hong Kong is considered. The growth and magnitude up to now probably indicate complementarities of economic relations between the two countries. Ch’ing ruled Taiwan with disinterest and inefficiency. It considered that “Taiwan is a trifling place - taking it. 30.

(40) would add nothing, relinquishing it would not be a loss.” It ruled Taiwan loosely and its power had never extended to the vast mountainous region of Taiwan. The Japanese saw the strategic position of Taiwan. Only after 1943, however, the KMT, and subsequently the People’s Republic of China in 1949, has asserted that Taiwan be “returned” to China in accordance with the “Cairo Declaration”. The fact is, the “Cairo Declaration” was merely a news release of the United States Government that was not signed by any Allied leaders, and as such it does not provide the international legal base of the Chinese claim. The peace treaties between Japan and. 治政大 Since the People’s Republic of ended WWII, also did not specify the legal status of Taiwan. 立. the Allies (1951), and even between Japan and the Republic of China (1952), which formally. China (PRC) has never governed Taiwan even for one moment, and since Taiwan has its own. ‧ 國. 學. effective territory, government, army, and the people, Taiwan has never been an integral part of. ‧. PRC, quite contrary to the Chinese claim. In fact, as we have seen in this paper, Taiwan has thrived when Taiwan was, and is, politically independent from China. y. Nat. er. io. sit. Historical facts aside, it is anachronistic and unacceptable to claim territory by foolishly contending ancestral kinship and geographical proximity. Cooperation or unification between. n. al. Ch. i n U. v. Taiwan and China, if there is any, must be based on the consensus of the people of Taiwan. engchi. through peaceful and civilized negotiations between the two countries, not by finger wagging or bullying and the threat of force. As we have shown in this paper, while Taiwan may be small, in terms of its land mass and population, compared with those of China, it is large in many other respects, including its per capita and aggregate GNP, trading prowess, foreign exchange reserves, inward and outward foreign investments, and its national competitiveness, especially in the new-economy fields of information technology. The win-win situation for both Taiwan and China can be achieved only when China recognizes Taiwan as an independent country,. 31.

(41) which is exemplary for China to achieve its own economic and political miracles in the new century. Whereas for China, as we have just seen above, this recognition is not unprecedented, it will tremendously enhance the position of Taiwan and China in the global economy and politics. 2.2. Taiwan's Economic, Opportunities and Challenges and the Importance of the TransPacific Partnership. Joshua Meltzer. This Paper provides an overview of Taiwan’s economic structure and the trading. 治政大 for Taiwan of not participating Taiwan’s economic challenges and analyzes the economic costs 立. relations which have underpinned the globalization of its economy. The Working Paper outlines. in the growth of regional Free Trade Agreements (FTAs). The Paper discusses why it is. ‧ 國. 學. important for Taiwan to participate in these FTAs and in particular the Trans-Pacific. ‧. Partnership (TPP) both as a means of retaining competitiveness in its key export markets and perhaps more importantly, as an external driver of domestic economic reform.. y. Nat. io. sit. 2.2.1. Taiwan's Economy.. n. al. er. Taiwan is an economic success. Since 1992, Taiwan’s GDP growth has averaged 4.5. Ch. i n U. v. percent. This raised real per capita income from $9,116 in 1992 to $19,762 in 2012, with the. engchi. result that today Taiwan is the 28th wealthiest country globally, and 6th richest country in Asia. And along the way Taiwan has transformed itself from a dictatorship into a vibrant democracy. Fuelling this growth in Taiwan has been a rapid expansion in international trade. In 1992, Taiwan’s total trade was over $180 billion and represented 82 percent of GDP. In 2012, Taiwan’s trade represented 140 percent of GDP, was valued at over $650 billion, making it the world’s 19th largest trader even though it is only the 28th largest economy in the world. Of Taiwan’s goods exports in 2012, approximately 99 percent were from the industrial sector,. 32.

(42) while agriculture goods comprised around 1 percent of exports. In terms of imports, over 77 percent of Taiwan imports are of agricultural goods and raw material, reflecting Taiwan’s limited arable land and lack of indigenous natural resources. Capital goods are the next largest imports (14 percent), followed by consumer goods (approximately 10 percent). As these figures demonstrate, Taiwan’s economy is highly dependent on international trade. In fact, from 20052012 net exports was the most important driver of growth in Taiwan. Taiwan’s economy focuses on producing parts and components that are incorporated into final products, often sold. 治政大contract manufacturing has been Taiwan’s exports comprise intermediate goods. This so-called 立. by companies from Japan, the United States, or European Union. In fact, over 70 percent of. especially focused in the information and communications technology (ICT) sector. Taiwan. ‧ 國. 學. produces 94 percent of the world’s motherboards and notebook PCs. And the Taiwan. ‧. Semiconductor Manufacturing Company produces most of the computer chips used by U.S. companies such Qualcomm and Nevada. That said, Taiwan also has some global brand names. y. Nat. er. io. sit. such as Acer and Asus for PCs, and companies such as Quanta and Wistron are original design manufacturers for most global PC brands. Additionally, Taiwan businesses rely heavily on. n. al. Ch. i n U. v. overseas production networks to make goods for export. This varies by sector, but in areas such. engchi. as ICT, up to 85 percent of Taiwan’s exports are made outside Taiwan. 2.2.2. Taiwan's Trade and Investment Relations. Over the last twenty years, Taiwan’s changing international trade and investment patterns have been characterized by growing economic interdependence with China in particular, but also East Asia more broadly. For instance, in 1992 China was Taiwan’s 26th most important trading partner with $748 million in total trade (158th export destination and 20th largest import source). By 2002 total trade with China was worth $18.5 billion, making it Taiwan’s 4th largest. 33.