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Direct Foreign Investment, Technology Transfer, and Industrial Development — The Case of Electronics Industry in Taiwan

In: Economic Development of Taiwan Early Experiences and the Pacific Trade Triangle

Author

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  • Frank S T Hsiao
  • Mei-Chu Wang Hsiao

Abstract

Direct foreign investment (DFI) contributes to the growth of economic activities in the host country. More important, direct foreign investment is considered as a major channel to bring technological know-how to the host country, creating backward and forward linkages which stimulate local development of industry (Lall, 1978; Sekiguchi, 1979; Hsiao and Hsiao, 1984). In this paper, we will first survey the general features of DFI in Taiwan in Section 9.1, followed by measuring the effect of DFI on the Taiwanese economy in Section 9.2. We will also study the difference of the effects of the American DFI and the Japanese DFI in Taiwan…

Suggested Citation

  • Frank S T Hsiao & Mei-Chu Wang Hsiao, 2015. "Direct Foreign Investment, Technology Transfer, and Industrial Development — The Case of Electronics Industry in Taiwan," World Scientific Book Chapters, in: Economic Development of Taiwan Early Experiences and the Pacific Trade Triangle, chapter 10, pages 425-443, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814618519_0010
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