Taiwan's Foreign Direct Investment Motives And Behavior Study

Since the late 1970s, foreign direct investment (FDI) of the developing countries and regions has expanded to a great extent. Because of the differences in investment motives, area choices and ways of investment between the developing countries and the developed ones, the traditional theories about FDI based on the research on the developed countries have been challenged.For the developing countries and regions, Taiwan is an investor that can provide experiences. Research on the motives and behavior of Taiwan's FDI will be a useful supplement to the few foreign investment theories that take developing countries as the object of study. Taking Taiwan as a case for study, this thesis provides theoretical analysis and the actual evidence as well.The dissertation centers on the motives of the Taiwanese enterprises when they are engaged in FDI. Enterprises in Taiwan adopt different investment strategies because their objectives to invest abroad vary. The dissertation is divided into seven chapters. It compares the characteristics of the motives and behavior of the Taiwanese foreign investment with the extant theories on FDI, pointing out wherein the differences lie while explaining the common ground. Because the Chinese mainland, the ASEAN countries and the United States are the major areas of Taiwan's overseas investment, this dissertation focuses mainly on these three areas for case study. The evidence of Taiwan's FDI indicates that in an era of globalization of economy as well as high-tech such as information technology, Taiwan's FDI in the developed countries tends to be expansive while its investment in the developing countries and areas is both defensive and expansive. Taiwan's FDI is outward extension of its manufacture industry. This brings about more benefits rather than costs to the economy.