The United States and not Japan has represented the largest market for Taiwan’s exports since 1962. In the 1970’s, 38.01 percent of Taiwan’s total exports were shipped to the United States. We believe that this level of exports to the United States should continue in the foreseeable future.
This study examines the export performance of Taiwan’s manufactured goods to the United States. We first explore the structural changes of Taiwan’s exported manufactures to the United States. We next compare this structural change with that of three other newly industrializing countries (NICs) Korea, Hong Kong and Singapore. Finally, employing a constant market share approach, we analyze the vicissitudes in the respective export competitiveness of the four NICs.
Our findings indicate that the export performances of these four countries differ substantially by product. These dissimilar performances illustrate differences in each country’s comparative advantage. We also provide the statistical information necessary to investigate and compare the performances of each country on an individual commodity basis.
To discern the future outlook of Taiwan’s exports to the United States, we explore the import and export markets of the United States on an industry by industry basis, and also attempt to track future trends that may become important to future trade between the United States and Taiwan.
We predict that among Taiwan’s exports to the U.S., some will continue to glow through 1986, while others will face the prospects of declining growth.
