Desenvolvimento industrial e externalidades de investimento estrangeiro direto: investimentos japoneses e industrialização de Taiwan

Taiwan is frequently studied and used as an example of “economic miracle” that experienced rapid economic growth and industrial development. While only being a poor rural nation in the 1950s, the island is now a technological powerhouse with companies such as TSMC that produce advanced components necessary for all electro-electronics industries. The studies on Taiwan’s economic success are often focused on the role the government played, such as the fiscal adjustments and export-oriented industrialization policies. The role of foreign direct investments is less explored and, when there are studies regarding it, it is often about the role of the United States. This study will, instead, explore the relationship between Taiwanese industrial development and Japanese FDI. It will explore the argument that Japanese FDI was a key factor that contributed to Taiwan’s development through mechanisms of knowledge spillover. Japan also has a long-standing relationship with Taiwan. Although being a pair of former colonizers and colonized, they maintained friendly relationships in the broader cold war context and the Taiwanese hold a pro-Japanese sentiment. The reduced language and cultural barrier, as well as the fact that Japan was both a major trade partner (trade volume accounted for almost 10% of Taiwan GDP in 1972) and investor (second only in a few sectors). These are what motivated this study to further analyze this relationship and its implications.