IDEAS home Printed from https://ideas.repec.org/a/taf/glecrv/v38y2009i3p297-319.html
   My bibliography  Save this article

An Empirical Study of OEM in Taiwan's Apparel Industry

Author

Listed:
  • Yi-Ping Lien

Abstract

This paper has examined the effectiveness of the original equipment manufacturing (OEM) system in Taiwan's apparel industry from the perspective of international competitiveness. For that purpose, this study uses the following three definitions as the dependent variables in the empirical analyzes: namely, the ratio of apparel's export value to real gross domestic product (GDP); apparel's export value per unit of labor cost; and trade specialization index of Taiwan's apparel industry. The indices constructed for statistical analysis in this study illustrate clearly that international competitiveness of Taiwan's apparel industry has deteriorated from 1989 to 2005. In addition, in order to clarify those factors that have influenced the fall of international competitiveness, this study identifies three important factors—namely, wage, labor productivity, and the real effective exchange rate (REER)—and four structural and policy dummies, and then conducted multiple regressions to clarify their statistical relations with each of the dependent variable. The analytical findings show that the Taiwanese apparel industry has lost its attractiveness as an OEM production base because of the rise of wages and the fall of labor productivity. In addition, our findings show that the appreciation of the New Taiwan Dollar (NTD) in terms of REER does not influence the movement of international competitiveness in Taiwan's apparel industry.

Suggested Citation

  • Yi-Ping Lien, 2009. "An Empirical Study of OEM in Taiwan's Apparel Industry," Global Economic Review, Taylor & Francis Journals, vol. 38(3), pages 297-319.
    • Handle: RePEc:taf:glecrv:v:38:y:2009:i:3:p:297-319
    DOI: 10.1080/12265080903157359
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/12265080903157359
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/12265080903157359?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:glecrv:v:38:y:2009:i:3:p:297-319. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RGER20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.