Overseas Production and Effects on Employment ?The Evidence from Taiwan Manufacturing Industry
Date Issued
2012
Date
2012
Author(s)
Hung, Yu-Hsia
Abstract
Under the circumstance of economic globalization, the operation of an enterprise has been innovated toward an atmosphere of globalization on the allocation of resources and internationalization on collaboration. In the situation of shallow economy, and the growth of industries is closed tied to the global economy, Taiwan can never be absent from the aforesaid globalization. In particular, while the government gradually removes the restriction of investment to Mainland China and aggressively conducts the conclusion of ECFA with Mainland China, the domestic enterprises also accelerate their procedures of conducting foreign investments. In the meantime, however, the domestic unemployment rate has also remained in a high level. Therefore, the concerns whether the overseas production would impact the domestic employment occur. On the bases of the abovementioned background, the paper pioneers in making use of the latest pooling data of 2001 and 2006 to conduct the research in order to clarify the impact of overseas production on the domestic employment. The conclusion of the research is abstracted as follows,
1.The motivations of overseas production: the pro-reasons include business scope, operation performance, and ownership advantage; the con-reason includes the labor productivity. The high-tech industries conduct overseas production based on the motivation of expansion such as export and ownership adventure; the traditional industries conduct overseas production based on the motivation of defensive concern.
2.The impact of overseas production on domestic employment: in general, the conduction of overseas production results in the reduction of demand on domestic employment therefore disadvantages the domestic employment environment. The further research in the structure of labor shows that the overseas production, on the one hand, reduces the non-technical domestic employment, and, on the other hand increases employment of technical workers.
3.The impact of conducting production in Mainland China on domestic employment: generally, the variation of domestic employment of enterprises which conduct production in Mainland China is consist to the variation of domestic employment of enterprises which conduct overseas production. Moreover, with regard to high-tech industries, compare with the enterprises which conduct overseas production, enterprises which conduct their production mainly in Mainland China have narrower overall workwes and non-technical workers reduction and larger technical workers expansion. With regard to traditional industries, the shift of the base of manufactures from Taiwan to Mainland China has disadvantaged the domestic employment of non-technical workers.
Subjects
Overseas production
Foreign direct investment(FDI)
Global logistics
Employment
Unemployment rate
Deindustrialize
Type
thesis
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