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A Structural Decomposition Analysis of Changes in Energy Demand in Taiwan: 1971-1984

Chia-Yon Chen and Adam Rose

Year: 1990
Volume: Volume 11
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol11-No1-11
View Abstract

Taiwan represents an interesting case study of a nation that has been able to adapt to the energy crisis remarkably well, registering sustained economic growth despite increased oil import expenditures. Certain characteristics of Taiwan's economy set it apart from a number of other developing countries. First, Taiwan's economy is very closely inter-linked with international markets. It is a major exporter of goods, and it has had to rely heavily on imports of energy since its indigenous energy resources are so meager. Second, the nation has had an unusually high rate of growth over the past 30 years. For example, Taiwan's GNP grew at an average rate of 9.1 percent per year during the period 1952-1980, as opposed to growth rates of generally below 5 percent experienced by many other LDCs during that period.

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