Analysis of the Competitive Advantage of Taiwanese and Mainland Chinese Exporting Industries in the EU Market

• Main Authors: HSU, FONG-LING, 許楓靈
• Other Authors: JING, SHIN-TSYR
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/95265179346381445894

碩士 === 東吳大學 === 經濟學系 === 89 === Based on the work of Yeats (1985), this paper transforms the revealed comparative advantage (RCA) indices into relative competitive position indices. Using these indices, the paper goes on to study the competitive advantages of twenty Taiwanese and Mainland Chinese exporting industries in the European Union market. I found all industries in both sides of the Taiwan strait are competitive, except the textile industry and electronics industry. Look into the main industries which were exported by Taiwan and Mainland China in EU market, the most competitive goods in machine-driven industry are parts and accessories, batteries, power-driven machinery, machine-tool, and office machine, in information and communication industry are automatic data process machines, in electronics industry are audio products, semiconductor devices, video products, and parts and accessories. Under pressure from the liberalization of international trade, firms are seeking out the best locations to invest in order to cut down on their costs and increase their competitive advantage. With its huge domestic market and primary factors, Mainland China becomes the most obvious choice for investors in low-end products. Taiwanese exporters have, therefore, already lost ground in this field, and in order to survive, they have to move out of Taiwan. Although facing further challenge from Mainland China, Taiwan still has a relative advantage in the field of high capital and technology-intensive products, particularly, in semiconductor devices, which will prove to be the main area of competition on both sides of the Taiwan strait in the years ahead.