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Technical Innovations and Demand–Supply Models of the Taiwanese Tea Industry After Joining WTO

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The 19th International Conference on Industrial Engineering and Engineering Management

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Abstract

Having joined WTO, the tea industry in Taiwan faced international competition, and it resulted in the transformation of production technology and quality upgrading. In this paper, we aimed to examine how technical innovations drive industry transformation and upgrading in Taiwan’s tea industry, and using an econometric model (3SLS) to analyze the effects of different economic variables on import and export of the Taiwanese tea. Data sourced from overall statistical database of DGBAS 1990–2011. The research found that “Whether Taiwan to join the WTO or not” had a positive correlation with “the difference between import and export of Taiwanese tea”. The study showed that on the supply side, Taiwanese tea industry had competitive advantage with high-quality technology in an international market; on the demand side, the domestic market was expanded due to the successful upgrading of tea technology; on the marketing side, those branded Taiwanese tea drove the upgrading of Taiwanese tea.

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Notes

  1. 1.

    Assume that there is n number of behavioral structures in a model, each behavioral structure involves one or multiple Intrinsic variables. In addition to the behavioral structure is being discussed here, there are (n − 1) number of structures, and functions in the event of (n − 1) structures, at least having one (n − 1) determinant of the value is not equal to zero, therefore this kind of behavioral structure is identified as fulfilling “necessary condition” and “necessary and sufficient condition” at the same time.

References

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Author information

Authors and Affiliations

  1. Department of Business Administration, Asia University, Taichung, Taiwan

    Tain-fung Wu & Chih-lan Kao

Authors
  1. Tain-fung Wu
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  2. Chih-lan Kao
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Corresponding author

Correspondence to Chih-lan Kao .

Editor information

Editors and Affiliations

  1. Industrial Engineering Institution of CM, Tianjin, China

    Ershi Qi

  2. Industrial Engineering Institution of CM, Tianjin, China

    Jiang Shen

  3. College of Management and Economics Industrial Engineering, Tianjin University, Tianjin, China

    Runliang Dou

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Wu, Tf., Kao, Cl. (2013). Technical Innovations and Demand–Supply Models of the Taiwanese Tea Industry After Joining WTO. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38427-1_30

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