| Summary: | 碩士 === 國立中山大學 === 經濟學研究所 === 106 === Since 2008, the foreign direct investment (FDI) as a share of GDP has largely declined in Taiwan from 1.3% in 2008 to 0.46% in 2015. This paper studies the macroeconomic effects of FDI fluctuations in Taiwan, using a small-open dynamic stochastic general equilibrium (DSGE) model. It finds that when FDI as a share of GDP decline by 0.28 percentage points, the impact output falls by 1%. If such a decline become permanent, output declines by 0.3% in the new steady state relative to the steady state without such a decline. When FDI has a bigger spillover effect on technology in the exporting sector, the negative macroeconomic effects on output, consumpution, investment and income are amplified. Quantitative analysis finds that the decline of FDI from 2008 to 2016 leads to an average decrease of output by 0.08% per year.
|
|---|
