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Regional Variation of Industrial Development in Taiwan

     As for capital productivity, the East region ranked at the top in 1966 and 1971 and was about the same with the Central region in 1976, then the East fell to become the lowest until 1996. The central region took the lead in capital productivity from 1981 to 1996. The North region ranked at the bottom from 1966 to 1976 and afterwards, and ranked only above the East except for 1981. On the average, capital productivity decreased 74 percent with the East decreasing more drastically by 93 percent.

     The increasing labor productivity may imply an improvement in the living standard of manufacturing employees. However, the declining capital productivity may not be so desirable for investors. A summary quotes at current price reveals that comparing 1996 with 1991, only four among the 22 categories of manufacturing had an increase in capital productivity. These four categories were wood and bamboo products (4.48%), wearing apparel (2.88%), machinery (2.41%), and printing processing (1.64%). The decreases in capital productivity were mostly more than 10 percent, and the most serious cases were found in petroleum and coal (-30.12%), food and beverages (-29.49%), transport equipment (-16.50%), non-metallic mineral (-15.87%), plastic (-15.38%), chemical matter (-15.15%), precision instruments (-14.78%) and electric and electronic machinery (-12.77%). Nevertheless, the profit remained around 7 percent for manufacturing as a whole. (The 1996 Census, Vol.3: 1-22)

2.3 Regrouping of Manufacturing Industries

     To further analyze manufacturing industries, it is necessary to regroup the data details into broader categories. There are different ways to regroup manufacturing industries. For instance, one study regrouped the 22 manufacturing industries classified by the 1996 census into four types: the urban technical-intensive type, the urban labor-intensive type, the local resources-relying type, and the basic materials-providing type. (Lin Chien-yuan, 1999: 24-25) This regrouping's advantage highlights features of urban vs. rural as well as labor vs. technical intensive. However, the industries grouped under the local resources-relying type are not all so appropriate. For example, raw materials for textile mills, such as cotton and wool, are not at all locally produced.

     To make it easy, this paper simply adopts classification according to the nature of manufacturing into four types in the following way: (The 1986 Census, Vol. 3: 16)



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