The Impacts of Abolishing the Statute for Upgrading Industries on Taiwan Economy
Date Issued
2008
Date
2008
Author(s)
Chen, Wei-Tso
Abstract
The main purpose of this thesis is to analyze the impacts of abolishing the statute for upgrading industries on Taiwan’s economy. I follow the framework(steps) adopted by Wu and Fan (2006), He No.9608, Lin (2005), to construct a macro-econometric model describing the channel of abolishing the statute for upgrading industries and use the change of tax revenue to design six simulations. The first one is to simulate abolishing the statute for upgrading industries in 2010. The others are based on the first simulation, and add some tax reforms or government expenditures policies. Finally, I have a comprehensive comparison among the six different situations.ccording to the result of the first simulation, in the short run abolishing the statute for upgrading industries will have negative impacts on economy, but in the long run it will improve government finance and economic growth. With the tax reduction policies, in the short run it can lessen the negative impacts brought by the statute for upgrading industries, in the long run it can also improve government finance and the development of the future economy but it will not work better than the first simulation. Conversely, with the increasing tax policy, in the short run it can aggravate the negative effects brought by the statute for upgrading industries, but in the long run it can improve the government finance and the development of the future economy the most. Last, I found that increasing government investment expenditure helps economy better than increasing government consumption expenditure, and the former takes less time to offset the negative impacts brought by the statute for upgrading industries.
Subjects
Statute for Upgrading Industries
Macro-econometric model
analysis of the policies
Tax reform
Accumulated Outstanding Debt of Government
SDGs
Type
thesis
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