Research On The Policy System Of Free Economic Pilot Zones In Taiwan

Since the 1960s,Taiwan has upheld the concept of economic liberalization and internationalization.In this process,the most influential event is the creation of the Manufacturing Areas for Export Commodities and other special development areas,which helped forge the "Taiwan economic miracle" on the road to an export-oriented economy characterized by a high degree of openness.With the same strain,Taiwan established the Free Economic Pilot Zones in 2013,and the mainland also developed the Free Trade Experimental Zones in Shanghai,which formed a simultaneous development trend.To this end,it is necessary to carry out a comprehensive and systematic study on the policy system of the Free Economic Pilot Zones in Taiwan,with a view to promoting the policy discussion and exchange of construction opinoins of both sides in the construction of free trade areas,in the era of high liberalization and internationalization of trade.On the basis of the basic concept and related theoretical background of the Free Trade Ports,this paper analyzes the historical evolution and institutional change of the Free Economic Pilot Zones in Taiwan.The first period is the initial development of the Manufacturing Areas for Export Commodities which aimed at establishing the exporting industry in Taiwan.The second period is the establishment of Scientific Industrial Park which aimed at promoting this island's scientific and technological level.And the third period is the establishment of Free Trade Port Areas which aimed at creating a full range of "Asia-Pacific Operations Centers".The attempt and exploration of every stage laid the institutional and realistic foundation of economic liberalization for the promotion of the Free Economic Pilot Zones at this stage.For the inspection and analysis on its policy system of the demonstration areas,we focus on the aspects of trade policies and financial policies.In the aspect of the rules in trade and investment,the demonstration areas attract Taiwanese and overseas industry and create jobs in the island through the substantial relaxation of the laws and regulations,the relaxation of the market access,the creation of a friendly tax environment,the optimized arrangements in the land and plant acquisition,and the innovation of operation and demonstration mechanism.All of the measures above can help Taiwan go out of the predicament of "boring economy" in recent years.In theaspect of the financial policies,the demonstration areas can optimize the capital allocation and enhance the ability of island's financial industry to compete with rivals in the Asian market,through broadening the operation scope of financial products,optimizing the industry supervision,nurturing local financial professionals,and using the method of "Classification and differentiation of management" in business.These can also support the development of other related entities and create a win-win situation.Based on the qualitative analysis of the policies arrangement and demonstration mechanism of the aspects of trade,investment and financial in the Taiwan's Free Economic Pilot Zones,combined with its core concepts of liberalization,internationalization and forward-looking which always exist in the construction of the demonstration areas,and its target of taking the first attempt to dock the international high standards trade rules and move forward to the "Free Economic Island",we construct a comprehensive evaluation system on the performance of the Taiwan's Free Economic Pilot Zones.This construction bases on the combination of qualitative and quantitative analysis and uses the fuzzy analysis framework of the analytic hierarchy process(AHP).The results show that maybe due to its discrimination against the investments from the mainland,as well as its inadequate regulations loose in the industrial upgrading,the demonstration and radiation effect of the Free Economic Pilot Zones to the economic liberalization and internationalization in this island is not significant.The special policies of Taiwan's Free Economic Pilot Zones have important revelation and reference significance for the construction of the Free Trade Experimental Zones in mainland China in terms of the facilitation of trade,investment and financial services.The construction of high-level free trade areas needs to relax the industry access on the basis of the simplification of regulatory approach,to loosen policies and regulations,to stimulate the market vitality fully,and to optimize the allocation of resources.