台灣的經濟發展是一個值得其他經濟體制仿效的模式，其背後的動力是值得探究的。台灣企業在國際市場嚴酷的競爭中追求生存，歷經了許多個階段。在產業發展的過程裡，政府及企業的良好互動是重要的關鍵。本研究顯示，政府與企業的相互合作與協調賦予台灣發展的動能。政府的教育及技能訓練等政策，有助於企業創造更多的附加價值。
本研究並發現，台灣在產業發展的初期，實獲利於美國的若干貿易保護政策。在發展後期擇引進適當的技術，並結合人力資源，使得像是製鞋業等工商團體提升了生產品質，在國際市場發揮競爭力。雖然台灣製鞋業近年來國內產量大幅下滑，但透過產業外移（特別是到中國及其他亞洲國家），在台的總公司則保留研發活動，維持了台灣在世界貿易上重要的地位。

Taiwan’s economic development is a good model to be emulated by other economies and the forces behind it need to be understood.
Taiwan became an important player in the global market where competitiveness is crucial for businesses to survive. Taiwan gained its place after going through several stages, in which many elements come into play. During the stages of industrial development, government and business sectors played very important roles in this true story of success and competitiveness.
 This study shows how different organizations of government and business sectors were joining with various actors of the Taiwanese economy in a cooperatively harmonious relationship. Government policies such as education and skill trainings were necessary to maintain the momentum of development and satisfy business sector’s desires to create more values and goods in order for Taiwan to become an important global player.
The shoe industry was analyzed using a scheme based on the Balance of Power theory to evaluate the effects of government measures of industrial regulations and their interactions with the business sectors. The study found that Taiwan’s government has played an active and important role in industrial development, especially in preparing the way in early stages for industries to take advantage of the U.S. restrictive trade policies and, in later stages, to develop appropriate technologies for such sectors as the shoe industry, combining with human capital to improve quality so as to compete effectively in the global market.
Production capacities of Taiwan’s shoe industry has fallen domestically in recent years, but through relocating factories abroad, especially to China and other Asian countries, and keeping headquarters and R&D activities in Taiwan, it is able to sustain important status in the world market.

PRELUDE	1
1.	STUDY MOTIVATIONS	1
2.	STUDY PURPOSES	1
3.	BASIS OF STUDY	2
4.	HYPOTHESES	4
5.	RESEARCH APPROACHES	4
6.	METHODOLOGY OF RESEARCH	5
I.	ECONOMIC DEVELOPMENT OF TAIWAN	6
1.	OVERVIEW	6
1.1.	Foreign Economic Relations	7
1.2.	Land Reform	10
1.3.	Monetary Policy and Capital Flows during the 1980s and 1990s	12
2.	GOVERNMENT -BUSINESS RELATIONS IN TAIWAN	16
2.1.	Defining Industrail Goals of the Main Players	17
2.2.	Government-Business Interaction	20
3.	CONCLUDING REMARKS	24
II.	GOVERNMENT POLICIES	26
1.	INDUSTRIAL DEVELOPMENT POLICIES	26
1.1.	Trade Policies	27
1.2.	Education and Skill Trainings	31
2.	GOVERNMENT POLICIES TOWARD THE ASIA-PACIFIC REGION	34
2.1.	Taiwan’s Opening -up	34
2.2.	The Go-South Policy	35
3.	GLOBAL TRADE REGIMES	36
3.1. Textile and Apparel	36
3.2. Generalized System of Preferences	37
3.3. Increasing International Linkages	38
4.	CONCLUDING REMARKS	40
III. BUSINESS REACTIONS	42
1.  LABOR DEMANDS	42
1.1. Managerial Practices in Early Stages	42
1.2. Labor behind Product Quality and Comparative Advantage	43
1.3. Industrial Relations	44
2.  BUSINESS ALLIANCES	45
2.1. Businesses’ Response to Global Competition	45
2.2. Trade Performance	48
2.3. Sources of Technology	56
3. OVERSEAS INVESTMENT	59
3.1. Main Investment Destination	59
3.2. Expatriates in Taiwan’s Overseas Businesses	62
3.3. Barriers in Taiwan’s Investment Abroad	63
4.	CONCLUDING REMARKS	64
IV. DEVELOPMENT OF THE SHOE INDUSTRY	66
1. BACKGROUND	66
1.1. Taiwan’s Export Expansion	67
1.2. Shoe Industry Boom	70
1.3. Slow Down of the Shoe Industry	72
2. THE ROLE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN THE SHOE INDUSTRY	75
2.1. Small and Medium Shoe Factories	76
2.2. Taiwanese SMEs  in China after 1987	76
3. PRODUCTION NETWORKS	78
3.1. Establishment of Networks	78
3.2. Taiwan’s Competitive Advantages	80
4. HUMAN RESOURCES	81
4.1. Working Conditions of Those Employed by Taiwanese Owners and Managers	82
4.2. Work Schedule and Wages	83
4.3. Industry Health and Environment Conditions	84
4.4. Worker Accommodations	86
5. TECHNOLOGY AND MARKET PROMOTION	88
5.1. Upgrading Technology Levels in Footwear Manufacturing	88
5.2. Market Promotion	90
5.3. Enhancing Communications with Customers	91
5.4. TFMA as Promoter	92
6.	CONCLUDING REMARKS	93
V. AN EVALUATION OF TAIWAN’S SHOE INDUSTRY	95
1. LABOR MARKET	95
2. TRADE PERFORMANCE	98
3. INTERNATIONAL INVESTMENT	99
4. TECHNOLOGY	100
5. OTHER POLITICAL AND SOCIAL ISSUES	101
VI. CONCLUSIONS AND SUGGESTIONS	104
1. CONCLUSIONS	104
2. CONTRIBUTIONS AND SUGGESTIONS	106
2.1. To Industry	106
2.2. To Students	106
2.3. To Foreign Readers (in Latin America, particularly in Guatemala)	106
BIBLIOGRAPHY	107
APPENDICES	119
APPENDIX A: MAJOR DEVELOPMENT THEMES OF REPUBLIC OF CHINA	119
APPENDIX B: TAIWAN’S EDUCATIONAL EARLY ACHIEVEMENTS	121
APPENDIX C: INTERVIEW QUESTIONNAIRES	122
1. Interview with a Factory Owner	122
2. Interview with a Manager of Multinational Shoes Company	128
3. Interview with a Taiwan Footwear Manufacturer Association Chief.	134
APPENDIX D: EVOLUTION OF FACTORY MEMBERS OF TFMA AND UNITS SOLD, 1999-2006	139
APPENDIX E: CHART E.1.  FOOTWEAR TRADE PATTERN OF TFMA MEMBERS	140
APPENDIX E: CHART E.2. FOOTWEAR EXPORTS BY COUNTRY AND CATEGORY	140
APPENDIX E: CHART E.3. AVERAGE PRICE UNIT THROUGH THE YEARS 1969-2005	140
PICTURE A.1. MAKING SHOES	143
PICTURES A.2. MACHINERY IN A SHOE FACTORY IN CHINA	144

CHARTS
CHART 1.1 SUMMARY OF MONETARY POLICY CHANGES, 1979-95……………………………..16
CHART 4.1 MEMBER FACTORIES 1969-2005………………………………………………………… 73
CHART 4.2 TAIWAN’S FOOTWEAR EXPORT DESTINATION 2006………………….……………. 74
TABLES
TABLE 2.1 EDUCATION REFORM IN THE 1990S .............................................................................................. 33
TABLE 2.2 TAIWAN IN WORLD TRADE ORGANIZATION.................................................................................. 40
TABLE 3.1 STATISTICS OF SMES IN TAIWAN 200-2005 .................................................................................. 47
TABLE 3.2 TRADE BETWEEN TAIWAN AND THE U.S., 1991-2005................................................................... 49
TABLE 3.3 TRADE BETWEEN TAIWAN AND JAPAN, 1991-2005 (IN BILLIONS U.S. DOLLARS) ......................... 50
TABLE 3.4 TRADE BETWEEN TAIWAN AND HONG KONG, 1991-2005............................................................. 52
TABLE 3.5 TRADE BETWEEN TAIWAN AND MAINLAND CHINA, 1991-2005 ................................................... 53
TABLE 3.6 EXPORTS TO COUNTRIES/REGIONS OF ASIA.................................................................................. 54
TABLE 3.7 EUROPEAN UNION’S TRADE WITH TAIWAN (2001-2005) .............................................................. 55
TABLE 3.8 TAIWAN TOP TRADE PARTNERS, 2005........................................................................................... 56
TABLE 3.9 APPROVED OUTWARD INVESTMENTS ........................................................................................... 60
TABLE 4.1 TAIWAN’S SHOE INDUSTRY PRODUCTION, 1984-2000 .................................................................. 68
TABLE 4.2 FOOTWEAR EXPORTS FROM TAIWAN, 1969-2006 ........................................................................ 69
TABLE 4.3 MOTIVATIONAL FACTORS BEHIND INVESTMENT TOWARD THE MAINLAND FOR TAIWAN’S SHOE
INDUSTRY ........................................................................................................................................... 77
TABLE 4.4 INSTITUTIONS CHRONOLOGY ....................................................................................................... 92
TABLE 5.1 TOTAL LABOR FORCES AND EMPLOYMENT IN MANUFACTURING SECTOR, 1985-2006................. 96
TABLE 5.2 MANUFACTURING SECTOR EMPLOYEE STATISTICS....................................................................... 97

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