Product Cycle And Industrial Hollowing-Out?? The Case Of The Electrical And Electronics Sector Of Taiwan

This paper traces the route of Taiwan's industrial restructuring from 1980 to 1999, during which period Taiwan switched from a capital inflowing country to a capital-out flowing one. By establishing an empirical model based on the idea of Vernon's product cycle theory, the authors construct a quantitative measurement of product turnover and product upgrading. Tests are applied to the electrical and electronic industry to see whether its product turnover and product upgrading has significantly slowed down in the 1990s. If so, they may conclude that the industrial hollowing-out may have appeared.