Analysis In Taiwan On The Mainland Direct Investment Impact On The Employment Of The Taiwan Area

This research aims at investigate the impact of Taiwan employment job market while Taiwan manufacturers invest in mainland. Although Taiwan unemployment rate was still high on average in the past years, if we observe carefully we would find that it was trending downside slightly. Currently Taiwan manufacturers are yet keen on investing in mainland. There is no obvious causality between the ongoing considerably investing in mainland and increasing unemployment rate in Taiwan, which is the objective of this research.The objective of this research is to investigate the trend of Taiwan manufactures investing mainland and the development of Taiwan labor supply-demand structure. According to labor demand theory and other factors that influence labor demand to establish a framework for empirical analysis. In terms of the industry characteristics, we divide the 15 industries into labor-intensive industry and capital-intensive industry. Aiming at 1990-2006 pooling data via OLS approach to empirical investigate the influence of Taiwan labor supply-demand structure when Taiwan's manufactures invest in mainland. Observation shows that labor-intensive industries investing in mainland would have slightly negative effect on in-Taiwan labor demand, which says that the past circumstance of labor-intensive industry investing in mainland would reduce in-Taiwan employment opportunities is not observably currently. However, capital-intensive industries induce remarkably negative influence on in-Taiwan labor demand. Upon the situation I'vementioned, I consider the labor-intensive industry is on the downgrade. Although there have been many industries migrated to mainland in recent years, mostly were manufacturing industry. Thus, the argument Taiwan unemployment rate raise is because Taiwanese businessmen investing in mainland, effecting both labor-intensive industry and capital-intensive industry. Nonetheless, the influence on labor-intensive industry is decreasing year by year, but the influence on capital intensive industry is growing.In the past, labor-intensive industry invested in mainland market caused Taiwan industry structure changed and business circumstances declined, Taiwan labor demand reduced and unemployment rate went up. In the recent years, the unemployment rate has not been rising evidently, but the circumstance of investing in mainland is still upward; investigating what affects the unemployment rate in Taiwan, roughly are the industrial structure adjustment influence employment demand (constitutive factor), the booming extension weak reduction industry to the work demand (circular factor), the imported laborers reduces the local laborer employment opportunity as well as the foreign investment behavior. Besides introducing the imported laborers factor, other three factors analyzing in this article with the real diagnosis result can be verified.