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Regional Variation of Industrial Development in Taiwan

This may imply that the Central region had more small-sized, labor-intensive manufacturing than other regions. It is notable that earnings per person in the North and South regions were above the average throughout, but neither region occupied the top rank throughout.
(Table 5 and Figure 5 here)

     It is remarkable that earnings per person in the East region jumped to become the highest in 1996. If we look into the original data, we can see that this leap came from Hualien County, which had on the average, earnings of NT$421,378 per person that year. (The 1996 Census, Vol.3: 318) Why was this so?

     With statistics from the census of 1991 and 1996 (Vol. 3: 414-437; Vol. 3: 350-375) we see that five industries in Hualien increased in the number of establishments. These industries were petroleum and coal products (from 7 to 11), plastic products (from 6 to 8), basic metal products (from 11 to 14), fabricated metal products (from 172 to 206), and machinery and equipment (from 43 to 49). Although data of earning in each industry is not available with breakdowns by county level, earnings per person in petroleum and coal products was NT$892,317 and in basic metal products was NT$440,583, much higher than the average. (The 1996 Census, Vol. 3: 332, 334). Thus, we may guess that the jump in the earnings per person in Hualien came mainly from the increase in petroleum and basic metal manufacturing.

     As for the growth rate of earnings per person, in general, it grew until 1991 and the rate was faster in 1976 and 1981, but there was a 60 percent decline between 1991 and 1996. The regional difference in the growth rate was rather negligible.

     A comparison of labor productivity and capital productivity can also be made with the available data based on enterprise units, instead o establishment units. Labor productivity is calculated as annual production value per person (total production value produced per NT$ of value assets operating at the end of the year (total production value/total value of assets). The data are adjusted with the whole sale price index by taking 1996 as a base year. The results are listed in Table 6 and depicted in Figures 6.1 and 6.2.

     The North region had the highest labor productivity, except in 1971 when the South was higher than the North by a small margin. The central region had the lowest labor productivity, as was the case of earnings per capita. On the whole, labor productivity increased almost 600 percent between 1966 and 1996.


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