This paper explores how the outward FDI made by Taiwanese manufacturing firms affects their decisions on domestic employment, production, investment and income distribution. The empirical examination was carried out by utilizing a set of panel data of 1,084 manufacturing firms in Taiwan over the...

Motivated by the positive relationship between outward FDI and inward ILM observed in Taiwan in the 1990s, this study proposed a formal model to explain the phenomenon. With deterioration in international competitiveness owing to a continuing rise in the domestic wage rate and/or appreciation of...