Determinants of Taiwan exports in ICT Products- An Augmented Gravity Model Approach.

碩士 === 國立臺灣科技大學 === 企業管理系 === 101 === The study examines the determinants of Taiwan’s international exports of Information and Communication Technology (ICT) products to its 25 major trading partners using an augmented gravity model. We add two extra variables: the real exchange rate (RER) and the t...

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Bibliographic Details
Main Authors: Hain-Yu Lo, 羅心妤
Other Authors: Shun-Chiao Chang
Format: Others
Language:en_US
Published: 2013
Online Access:http://ndltd.ncl.edu.tw/handle/78050404965420929842
Description
Summary:碩士 === 國立臺灣科技大學 === 企業管理系 === 101 === The study examines the determinants of Taiwan’s international exports of Information and Communication Technology (ICT) products to its 25 major trading partners using an augmented gravity model. We add two extra variables: the real exchange rate (RER) and the tariff. The former allows us to study the movement in the relative prices and their impact on trade pattern, the latter to analyze the impact of the tariff barriers on bilateral trade flows. The study first employs the Breusch-Pagan LM test, the Hausman test and the Hausman-Taylor over-identification test to choose the appropriate empirical method. The empirical result reveals that the lowing the tariff plays an important role in improving the exports of ICT products. In addition, the significantly negative coefficient of the real exchange rate implies that the currency depreciation strategy is not appropriate to the long-term bilateral trade in ICT products for Taiwan.