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An Analysis of Trade Structure between Taiwan and ASEAN

Quang Hoan Truong Other

2017 Taiwan Fellowship Scholar

Field of Study:Social and economic

No:10065

Date:2017/9/5

Abstract:

Previous studies often explored Taiwan-ASEAN trade relations through descriptive analyses rather than relying on empirical evidence. This study principally based on empirical analyses of trade pattern indices to investigate major trends and changes taken place in Taiwan-ASEAN trade relations over recent decades as well as identify the key determinants of such changes. This study found out that Taiwan-ASEAN trade structure has been characterized by high proportion of manufacturing and intermediate goods embodied with high technology content. In which, the improvements of production capability in ASEAN countries likely stem from significant FDI flows including the Taiwanese enterprises entering into the high technology manufacturing sector of the region. However, Taiwan-ASEAN export structure has been less diversified, reflecting the easy vulnerability of Taiwan-ASEAN trade relations when international economic environment fluctuates. Given the low possibility of reaching a free trade agreement in near future, it is suggested that Taiwan and ASEAN should employ dynamic approaches to reap greater bilateral trade expansion and other economic benefits. Key