This study begins by examining the plans for economic development in France since the end of the Second World War and the role played by the French government in the economic sphere. Next, the significant changes in economic policy devised by the Socialist government under Mitterand are addressed, as are the difficulties that have been experienced in implementing them and their possible impact on the future.
The paper also looks at the comparative positions of Taiwan and its major competitors in the French market. To do this, the paper analyzes the trade structure of the French economy and the trade positions of exported commodities originating from Taiwan and other countries in it. Also studied are the determinants of the Taiwan-France trade flow, and the relative competitive positions and the changes in competition capacities among Taiwan and competing nations.
A brief summary of some of the major findings is given below:
1. The determination of French imports from Taiwan is influenced far less by price than by nonprice factors. Specifically, import quotas and the lack of marketing information and channels seem to play a major role in the composition of bilateral trade.
2. The structure of Taiwan’s competitive capacity in the French market has gradually moved towards metal products, communications devices, machinery, electronics, and electric appliances. This marks a shift away from Taiwan’s earlier export of traditional textile, plastic, and wood products.
3. Correlation analysis performed in the study reveals that South Korea has been the chief competitor of Taiwan in the French market since the 1970s. Forecasting into the short-term future, Taiwan, South Korea, Hong Kong, and Mainland China should all belong to the same competitive cluster in the French-market.
