Although Taiwan is poor in natural resources, her geographical position is a favourable factor for economic growth. This point is similar to Singapore and Hong Kong. Hence, the great trade flow of the western edge of the Pacific Basin has fostered the development of the three newly industrialising countries (NICs).


Financial Development Land Reform International Reserve Investment Incentive Real Sector 
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  1. 1.
    Estimated on the basis of factor costs of constant (1981) prices, adjusted with changes in terms of trade. See Directorate-General of Budgeting, Accounting, and Statistics (DGBAS), National Income in Taiwan Area, December 1987, pp. 14–15.Google Scholar
  2. 2.
    The average annual growth rate of population was at a high level of 3.4 per cent in the period 1951–66; it declined to 2.3 per cent in 1967–79 and to 1.5 per cent in 1980–7. In 1987, it was only 1.1 per cent. See DGBAS, Taiwan Statistical Data Book, 1987, p. 4.Google Scholar
  3. 3.
    See DGBAS, Monthly Statistics of the Republic of China, no 267, March 1988, p. 11.Google Scholar
  4. 4.
    The Gini coefficient declined from 0.558 in 1953 to 0.360 in 1964 and to the lowest of 0.303 in 1980. After that, it went up to 0.317 in 1985 and 0.322 in 1986, implying a reverse trend towards more unequal distribution of income in the 1980s, particularly in 1984–6. See Shirley W. Y. Kuo, ‘Achievement of Growth with Equity’, a paper presented to the Conference on Economic Development Experience of Taiwan, held in Taipei, 8–10 June, 1988;Google Scholar
  5. and DGBAS, The Survey Report of Personal Income Distribution in 1986, October 1987, p. 13.Google Scholar
  6. 5.
    See Simon Kuznets, ‘Economic Growth and Income Inequality’, American Economic Review, 45 (March 1955), pp. 1–28.Google Scholar
  7. 7.
    E. S. Shaw, Financial Deepening in Economic Development (New York: Oxford University Press, 1973);Google Scholar
  8. R. I. McKinnon, Money and Capital in Economic Development (Washington: Brookings Institution, 1973)Google Scholar
  9. and R. I. McKinnon (ed.) Money and Finance in Economic Growth and Development (New York: Marcel Dekker, 1976).Google Scholar
  10. 8.
    See Sheng-Yi Lee, Trade and Investment Relations Between Taiwan and Asian Countries Chung-Hua Institution for Economic Research (CHIER) Economic Monograph Series, no 16, July 1986, pp. 61–2.Google Scholar
  11. 10.
    D.H. Robertson, Essays in Money and Interest (selected, with a memoir by Sir John Hicks) (London: Collins, 1966).Google Scholar
  12. 11.
    See R. M. Solow, ‘A Contribution to the Theory of Economic Growth’, Quarterly Journal of Economics, 62 (November 1958) pp. 65–94.Google Scholar
  13. 12.
    See S. C. Tsiang, ‘Success or Failure in Economic Take-off’, a paper presented to the Conference on ‘The Problem of Development’ at Buffalo, New York, 27–29 May, 1988; and ‘A Model of Economic Growth in Rostovian Stages’, Economica, 32 (October 1964) pp. 619–48.Google Scholar

Copyright information

© Lee Sheng-Yi 1990

Authors and Affiliations

  • Lee Sheng-Yi
    • 1
    • 2
  1. 1.Chung Hua Institution for Economic ResearchTaipeiTaiwan
  2. 2.Department of Economics and StatisticsNational University of SingaporeSingapore

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