Selecting Core Industries for Free Trade Zone

• Main Authors: Hsieh, Hui-Chuan, 謝慧娟
• Other Authors: Feng, Cheng-Min
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/19952643768734472081

博士 === 國立交通大學 === 交通運輸研究所 === 98 === The growth of global business has brought about more intense global competition. In order to face this challenge, port’s development has redefined its functions and roles in value-driven chains, with ports being gradually established as free trade zones (FTZs). To enhance the competitiveness and efficient use of the limited land area of FTZs, the most critical issue is in selecting suitable core industries within the FTZs. The study first explores the meaning and concept of FTZs by using literature review and the comparison of FTZs in different countries. One way to enhance the competitiveness of FTZs is to introduce high value-added industries, having strong linkage with domestic industries and high market share in a competitive market to the core industries. This study aims at selecting core industries in FTZs through the intersection set of three indicators, namely value-added, market share, and backward and forward industrial linkage in output analysis. To attract core industries to move into FTZs in Taiwan, this study suggests some strategic incentives to these core industries and related industries, which may form industry clusters and benefit regional and domestic economic development. It is found from the empirical study that ′base metals and articles of base metals′, ′machinery and electronic components′, and ′products of the chemical or allied industries′ can be selected as the core industries in FTZs in Taiwan.