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

In: The 19th International Conference on Industrial Engineering and Engineering Management

Author

Listed:
  • Tain-fung Wu

    (Asia University)

  • Chih-lan Kao

    (Asia University)

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.

Suggested Citation

  • Tain-fung Wu & Chih-lan Kao, 2013. "Technical Innovations and Demand–Supply Models of the Taiwanese Tea Industry After Joining WTO," Springer Books, in: Ershi Qi & Jiang Shen & Runliang Dou (ed.), The 19th International Conference on Industrial Engineering and Engineering Management, edition 127, chapter 0, pages 281-291, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-38427-1_30
    DOI: 10.1007/978-3-642-38427-1_30
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