Taiwan taking the WTO by the horns

Taiwan''s expected entry into the World Trade Oranization is likely to put pressure on their economy in the short-term.

After Chinas expected entry to the World Trade Organization WTO in the first half of 2001, Taiwan will likely follow. Despite some expected gains, entry to the WTO will inflict short-term economic pains in Taiwan, because the island will have to speed up structural adjustments.  An investment hollow out from Taiwan to China will follow, as Taiwanese firms struggle to survive.  This will lead to growth leakage and hurt employment in Taiwan in the short-term.

However, WTO will serve as an external lever for the weak minority DPP government to kick-start Taiwans much needed, but long ignored, structural reforms. Creative destruction under the WTO will strengthen the fundamentals for Taiwan...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222