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An Exploration of Key Factors of Attracting Investments in Kaohsiung Export Processing Zone

Since the EPZ was set up in 1966, it has attracted foreign investment, introduced technology, opened up foreign trade and provided employment opportunities. When EPZ was first set up, it had every kind of investment-rewarding regulations, ¡§One-stop Window¡¨ administrational measures, so it could attract a lot of foreign and overseas Chinese capitals. But, after 2 years, the 68-hectare area was not enough for using. The EPZA has continuously expanded the zones up to 9 so far: the total area is about 576.81 hectares. The EPZs are export-oriented, their products are all exported, and the professions have increased step by sep, including trade, logistics and warehouses, software consulting and related industries. Its capital resources were mainly from Europe, U.S., Japan and Hong Kong, but converts into domestic mostly now, with 47.79%, the highest ratio. The Zones¡¦ industrial structure also changed from the original garments, plastics and leather with more than 55% to electronics & electric machinery with 80% the most now.
The Export Processing Zone Administration (EPZA) has also coped with the era trend changes by innovating the policies and functions, such as efforts in zone transformation, deregulations, trade liberalization and industrial clustering. As the accumulations of Taiwan¡¦s capital and technology and the enormous changes both in global politics and economy, the in-zone enterprises have also changed the industrial structures and production processes, walk out the OEM shadows and walk in the ODM, so as to produce and do marketing by themselves and to expand the markets. They have transformed from labor-intensive industries of garments, plastics, leather to capital-intensive high-tech industries of IC, LCD, optics, precise tools, information software and digital content and so on. When Taiwan¡¦s producing costs are rising little by little, the enterprises form all over the world are moving to the mainland China and the booming southeastern Asian countries to reduce costs and grip the markets. It is the question how to mold the more suitable investment environment to lure the Taiwanese enterprises come back home and the foreign investment turn around to Taiwan.
This study made the in-depth interviews and did the questionnaires to scholars, government agencies and the industrial circle for over 30 copies. This study also analyzes the key factors of attracting investment by AHP hierarchical analysis method. The results revealed that, firstly, the enterprises¡¦ interactions and the neighboring of customers, the benefits of industrial cluster and the completion of supply chain of down and up stream, are vital to attract investment. Secondly, the completion of the in-zone infrastructure is the most important key factor for attracting investment. Thirdly, The EPZA ¡¥s favorable measures and administrative efficiency are also the prior considering factors.
This study suggested that the administration units should upgrade the functions of their in-zone administrative steps, build the modern facilities of the infrastructure and attach importance to the living functions, strengthen the cooperation between industries, governments and schools, and propagate the investment-rewarding measures offered by governments to the enterprises, so that the governments¡¦ good policies can truly do favors to the in-zone enterprises, and thus construct the zones¡¦ better investment environment and attract investment.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0711108-152014
Date11 July 2008
CreatorsHuang, Ti-fen
ContributorsSan-bao Zeng, Ji-hwa Wu, Ying-fang Huang, Bo-wen Zheng
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0711108-152014
Rightscampus_withheld, Copyright information available at source archive

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