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Causes of Growth: A Study of Taiwan's Bicycle Industry

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  • Chu, Wan-wen

Abstract

This paper looks at the history of Taiwan's bicycle and parts industries and examines the lessons that can be learned from it. The initial impetus for the big change came in the form of large original equipment manufacturer orders from the American importers, which was prompted by the sudden U.S. demand surge in 1971-74. Taiwan outcompeted other places because its industry was able to respond quickly in terms of production capability and entrepreneurship. This was a result of accumulated learning under import substitution and from the favorable factors on the overall and industry level in Taiwan. Conditions in Taiwan fostered the emergence of numerous small- and medium-sized enterprises, which helped the development of a parts suppliers' network. All three factors--accumulated learning, a favorable environment, and globalization of production--were necessary conditions for the growth of Taiwan's bicycle industry. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Chu, Wan-wen, 1997. "Causes of Growth: A Study of Taiwan's Bicycle Industry," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(1), pages 55-72, January.
    • Handle: RePEc:oup:cambje:v:21:y:1997:i:1:p:55-72
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    Cited by:

    1. Chih-Chao Chung & Li-Chung Chao & Chih-Hong Chen & Shi-Jer Lou, 2016. "A Balanced Scorecard of Sustainable Management in the Taiwanese Bicycle Industry: Development of Performance Indicators and Importance Analysis," Sustainability, MDPI, vol. 8(6), pages 1-21, May.
    2. Safari Kulondwa, 2020. "Contribution of Internationalisation to SME Growth: Evidence from the Kenyan Manufacturing Sector," Economics and Business, Sciendo, vol. 34(1), pages 261-272, February.
    3. Rasiah, Rajah & Lin, Yeo, 2003. "The Role Of Market, Trust and Government in the Development of the Information Hardware Industry in Taiwan," UNU-INTECH Discussion Paper Series 2003-10, United Nations University - INTECH.

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