This research project examines the impacts of the 2008 global financial crisis on Taiwan’s export activities and labor markets.
First, we examine whether or not the crisis has produced any notable changes in export trends and in the relationship among export orders, export outsourcing ratio, total exports and employment, using newly available macro data.
Second, by using firm-level survey data, we examine how firms and business sectors adjust their export strategies and hiring decisions to cope with the crisis.
Third, we also use the survey data to provide indirect evidence of triangular trade. We define two types of triangular trade, the broad definition (i.e. Taiwanese export orders are subcontracted to and fulfilled by the factories in China and subsequently re-exported to other countries) and the narrow definition (i.e. Taiwanese intermediate goods are exported to China for further processing purposes and then re-exported to other countries). We then describe factors that trigger the triangular trade. Finally, some policy suggestions about the role government can play in spurring the economy to upgrade and grow are offered in the report.