c Cooperation and Development 183).
In addition to dissuading direct foreign investment, Taiwan also, to a great extent, closes its domestic markets to foreign manufacturers (Mitchell 371). The dissuading of direct foreign investment, the relatively closed domestic markets, and the growth of the Taiwanese economy combined to create a capital problem for the country in the mid-1980s, as available loan capital was insufficient to meet the demands of the rapidly growing economy, while the country's protectionist policies discouraged foreign investment. Capital scarcity, thus, threatened the continued rapid development of the Taiwanese economy. While the Taiwanese relaxed its inward-directed direct foreign investment policie
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