TAIWAN

TAIWAN: AN ASSESSMENT OF THE IMPLICATIONS FOR INTERNATIONAL MANAGEMENT OF FOREIGN DIRECT INVESTMENT INWARD AND OUTWARD

This research assess the implications for international management of foreign direct investment both inward and outward involving the Republic of China (Taiwan). The focal period of this assessment is 1993-1997. The foreign direct investment into and out of Taiwan during this period is presented in Table 1, which may be found below on this page.

Foreign Direct Investment: Taiwan 1993-1997

Source: Economist Intelligence Unit, 1997.

As the data presented in Table 1 indicate, Taiwan's outward forward direct investment far exceeds the country's inward foreign direct investment. A part of this difference is explainable by what has been termed Taiwan's "check book diplomacy" (Organization for Economic Cooperation and Development 117). An important part of this difference, however, is explainable by the policies of the Taiwanese government that discourage direct foreign investment in Taiwan (Pierson 1170). The target regions for Taiwan's outward direct foreign investment and the source regions of Taiwan's inward direct foreign investment are identified in Tables 2 and 3, respectively, which may be found below on this page.

Target Regions for Outward Foreign Direct

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