Editing Economy of Taiwan (section)

==History==
{{Main|Taiwan Miracle}}
{{See also|Economic history of Taiwan|Four Asian Tigers|}}
[[File:GDP per capita development in Taiwan.svg|330px|left|thumb|GDP per capita development in [[Taiwan]]]]
Taiwan has transformed itself from a recipient of U.S. aid in the 1950s and early 1960s to an aid donor and major foreign investor, with investments primarily centered in Asia. Private Taiwanese investment in mainland China is estimated to total in excess of US$150 billion,<ref>[http://www.winklerpartners.com/a/comment/taiwanese-investment-in-china.php Taiwan Investment in China] {{webarchive |url=https://web.archive.org/web/20110421035236/http://www.winklerpartners.com/a/comment/taiwanese-investment-in-china.php |date=21 April 2011 }}</ref>{{Better source needed|reason=Blogs are not reliable sources.|date=November 2021}} and official tallies cite Taiwan as having invested a comparable amount in Southeast Asia.

In 1949, over two million Kuomintang supporters fled to the island following the loss of [[Mainland China]] in the [[Chinese Civil War]].<ref>{{cite book|last=Dunbabin|first=J. P. D.|title=The Cold War|publisher=Pearson Education|year=2008|page=187|isbn=978-0-582-42398-5|url=https://books.google.com/books?id=IVriqPvx7iwC&pg=PA187|quote=In 1949 Chiang Kai-shek had transferred to Taiwan the government, gold reserve, and some of the army of his Republic of China.|access-date=12 November 2015|archive-date=10 June 2016|archive-url=https://web.archive.org/web/20160610120145/https://books.google.com/books?id=IVriqPvx7iwC&pg=PA187|url-status=live}}</ref><ref>{{cite book|last=Ng|first=Franklin|title=The Taiwanese Americans|publisher=Greenwood Publishing Group|year=1998|page=10|url=https://books.google.com/books?id=lPzsB_wJQW0C&pg=PA10|isbn=9780313297625|access-date=12 November 2015|archive-date=2 January 2016|archive-url=https://web.archive.org/web/20160102065541/https://books.google.com/books?id=lPzsB_wJQW0C&pg=PA10|url-status=live}}</ref><ref name="bbctimeline-retreat">{{cite news|url=http://news.bbc.co.uk/hi/english/static/in_depth/asia_pacific/2000/taiwan_elections2000/1949_1955.stm|title=Taiwan Timeline - Retreat to Taiwan|year=2000|work=BBC News|access-date=21 June 2009|archive-date=24 June 2009|archive-url=https://web.archive.org/web/20090624190413/http://news.bbc.co.uk/hi/english/static/in_depth/asia_pacific/2000/taiwan_elections2000/1949_1955.stm|url-status=live}}</ref> The sudden increase in population also affected Taiwan's economy.

Facing the economic pressure, the Kuomintang regime established several economic plans and policies. The first step towards industrialization was land reforms, a crucial step in modernizing the economy, as it created a class of landowners with the capital they could invest in future economic endeavors. US aid was also important in stabilizing post-war Taiwan, and it constituted more than 30 percent of domestic investment from 1951 to 1962. These factors, together with government planning and universal education, brought rapid advancements in industry and agriculture, and living standards. The economy shifted from an agriculture-based economy (32% of GDP in 1952) to an industry-oriented economy (47% of GDP in 1986).<ref name="story">{{cite web|url=http://www.taiwan.com.au/Polieco/History/ROC/report04.html|title=The Story of Taiwan - Economy|website=Taiwan.com.au|access-date=23 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20100202032138/http://www.taiwan.com.au/Polieco/History/ROC/report04.html|archive-date=2 February 2010}}</ref>{{Better source needed|reason=This is source is not reliable.|date=November 2021}} Between 1952 and 1961, the economy grew by an average of 9.21% each year.<ref name="story" />{{Better source needed|reason=This is source is not reliable.|date=November 2021}}

Once again, the transformation of Taiwan's economy cannot be understood without reference to a larger geopolitical framework. Although aid was cut back in the 1970s, it was crucial in its formative years, spurring industrialization, and security and economic links between Taiwan and the United States were maintained. Uncertainty about the US commitment accelerated the country's shift from subsidized import-substitution in the 1950s to [[export-oriented industrialization|export-led growth]].The development of foreign trade and exports helped absorb excess labor from a decreased importance of agriculture in the economy.<ref name="story" />{{Better source needed|reason=This is source is not reliable.|date=November 2021}} [[Taiwan]] moved from cheap, labor-intensive manufactures, such as textiles and toys, into an expansion of heavy industry and infrastructure in the 1970s and then to advanced electronics in the subsequent decade. By the 1980s, the economy was becoming increasingly open, and the government moved towards the privatization of government enterprises.<ref name="story" />{{Better source needed|reason=This is source is not reliable.|date=November 2021}} Technological development led to the establishment of the [[Hsinchu Science and Industrial Park|Hsinchu Science Park]] in 1981. Investments in [[mainland China]] spurred cross-strait trade, decreasing Taiwan's dependence on the United States market.<ref name="story" />{{Better source needed|reason=This is source is not reliable.|date=November 2021}} From 1981 to 1995, the economy grew at an annual rate of 7.52%, and the service sector became the largest sector at 51.67%, surpassing the industrial sector and becoming a major source of the economy's growth.

International Trade is officially assisted by [[Taiwan External Trade Development Council]].<ref>{{cite web|title=Taipei Taitra - List of TAITRA overseas offices|url=http://taipei.taiwantrade.com.tw/flash/big/unitList.jsp?lang=en_US|url-status=dead|archive-url=https://web.archive.org/web/20161028054842/http://taipei.taiwantrade.com.tw/flash/big/unitList.jsp?lang=en_US|archive-date=28 October 2016|access-date=9 November 2013|website=Taipei.taiwantrade.com.tw}}</ref> Because of the financial policy<ref>{{Cite web|title=Banking Environment and Reform Measures of Taipei, China During the Asian Financial Crisis|url=http://www.aric.adb.org/pdf/aem/external/financial_market/Sound_Practices/tap_bnk.pdf|url-status=dead|archive-url=https://web.archive.org/web/20140709162957/http://www.aric.adb.org/pdf/aem/external/financial_market/Sound_Practices/tap_bnk.pdf|archive-date=9 July 2014|access-date=18 February 2013}}</ref> by the [[Central Bank of the Republic of China (Taiwan)]] and its entrepreneurial strengths,<ref>{{cite web|title=The Definition, Purposes, Functions and Services of Incubation Centers|url=http://incubator.moeasmea.gov.tw/en/incubation-centers-en/incubation-centers-info-en|access-date=27 July 2018|website=Incubator.moeasmea.gov.tw|archive-date=7 October 2019|archive-url=https://web.archive.org/web/20191007073942/https://incubator.moeasmea.gov.tw/en/incubation-centers-en/incubation-centers-info-en|url-status=live}}</ref> Taiwan suffered little from the [[1997 Asian financial crisis]] compared to other economies in the region.
[[File:Taiwan bonds.webp|thumb|center|Taiwan bonds <br> No [[Inverted yield curve]]s
{{legend-line|#00A2FF solid 3px|30 year}}
{{legend-line|#61D836 solid 3px|20 year}}
{{legend-line|#929292 solid 3px|10 year}}
{{legend-line|#F8BA00 solid 3px|5 year}}
{{legend-line|#FF2600 solid 3px|2 year}}
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