Suchergebnisse

Taiwan experienced a sharp deceleration in economic growth in the second quarter of 2015. If Taiwan's exports continue to deteriorate, Taiwan would have to struggle to maintain a one per cent growth rate. Taiwan's economic conundrums mainly lie with its deteriorating industrial structure. Without deepening industrial structural upgrades and reforms in the information and communications technology sector in particular, Taiwan will lose its international competitive advantage.

The benefits deriving from rapid economic growth have chiefly accrued to capital returns. Consequently, the decline in the share of Chinese gross domestic product (GDP) accounted for by labour income has been most pronounced. To sustain growth, China will have to ensure robust consumption. Increasing the labour share in GDP and hence promoting domestic consumption will play a decisive role in rebalancing China's economy.

As the growth momentum had continued to remain strong, the 2014 gross domestic product growth reached 3.74%. Since the global economy is likely to grow at a slow and unbalanced pace in 2015, the Taiwan economy is correspondingly expected to grow at a moderate pace of 3.78% in 2015. China's economic slowdown is likely to impose a substantial impact on the Taiwan economy.

Once privatised, SOEs are operating in a market with free competition; their reported earnings become an important indicator of the enterprise's operational performance. The degree of control that the state is able to exert over the company will diminish after privatisation. The concentrated ownership structure and the strong political and economic connections between the government and listed companies are the main causes of earnings management in China.

The global financial crisis prompted the Taiwanese government to pursue demand-driven measures to bail out the economy, a painstaking task to balance the budget. The sustained budget deficits could reduce national savings and further impose a substantial negative effect on long-term economic growth. The growing government debt is a conundrum, which will be a tax burden for future generations if not dealt with decisively.

As Chinese government policy has evolved, so have the models adopted by foreign banks for developing their branch networks in China. Burdensome regulation and unequal treatment compared to those for Chinese banks have impeded the speed and scope of foreign banks' operation. China's deepening financial reforms could provide a fair and competitive environment for foreign banks' penetration, offering openings for foreign banks to participate more extensively in the Chinese economy.

The Taiwan economy in recent years has been plagued by low or negative growth and rising structural unemployment, two kinds of turbulence that have been developing for some time. Underneath these economic woes is the even more serious problem of growing budget deficits that, if unchecked, could lead to a slippery road for Taiwan in the long run. Shrinking revenue and rising government spending in social welfare areas cause widening budget deficits. The continual swelling of these deficits is an important area requiring reform.

Examines the causal relationship between interest rates, savings and income in the Chinese economy over the period 1952 to 1999, using the cointegration test and Bayesian vector autoregression (BVAR) for empirical testing. The empirical evidence from the cointegration test confirms that there is a stable long‐run relationship between interest rates, savings and income, whilst the BVAR causality test shows unidirectional causality running from savings to income. For China's transitional economy, it is therefore important to establish well‐developed financial institutions – particularly the independence of the Central Bank – interest rate liberalization and sound financial intermediation, all of which are important for the efficient allocation of capital, which, in turn, can help to establish sustainable economic growth.

Examines how the locational choice of foreign direct investment (FDI) is influenced by regional characteristics in mainland China, such as the potential for market share extension, labour cost differences, allocative efficiency, transportation infrastructure, and research and development capability. Empirical testing is conducted by the conditional logit model using pooled cross‐section and time‐series data. Empirical findings for the 1987‐1991 period indicate that the variable for market share extension potential only affects FDI in the middle region. Surprisingly, labour cost differences do not affect the location of FDI. Interregional railroad connections are found to be positively related to the choice of location of FDI, but FDI may not necessarily locate near innovative Chinese industries.