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Production and location choices of firms in the Taiwanese electronics sector

by 1978- Lee, Yi

Abstract (Summary)
Increases in wages and the appreciation of the New Taiwanese dollar since the mid-1980s have significantly altered the environment in which firms operate and survive. In particular, as more countries have liberalized their trade and foreign investment policies, Taiwanese firms have been pressured to respond to the increased international competition for the pool of foreign investment funds. This thesis uses micro data from Taiwanese electronics industry to present two firm strategies in response to competition from other low-wage countries: identify low-cost production sites and change product mix. Chapter 1 introduces the background and evolution of the Taiwanese electronics industry. Chapter 2 presents a theoretical model which captures the different incentives of Taiwanese multinationals investing in high- and low-income countries, and an empirical analysis of the link between firm heterogeneity and location choices. Chapter 3 empirically analyzes the product choices of Taiwanese multi-product plants during the 1990s.
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School:Pennsylvania State University

School Location:USA - Pennsylvania

Source Type:Master's Thesis

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