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Economic Development in Taiwan: A Model of a Political Economy

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Taiwan has exhibited a very successful pattern of rapid economic growth and declining income inequality over the past three decades based on four major structural transformations: 1) agricultural reform, 2) import-substitution industrialization, 3) export-led growth, and 4) change from labor-intensive to technology-intensive production. After describing Taiwan's economic record, this paper provides an interpretation by developing a model of the R.O.C.'s political economy based on the relationships among social structure and inequality, economic structure and performance, the role of the state, the nature of domestic elites, and foreign economic and political relations.

Affiliations: 1: University of Wyoming, Laramie, U.S.A.


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