N/A

This paper investigates the adjustment and relocation processes within two Taiwanese manufacturing sectors, namely footwear and textiles. These sectors serve as examples of industries that initially receive developmental support during early growth stages, become
crucial contributors to the local economy, and subsequently encounter challenges when growth decelerates. Taiwan, often regarded as a "late-developed" country, faces the unique predicament of confronting issues typically associated with both developed and developing
nations due to its rapid economic transition and industrialization within a relatively short time frame. While Taiwan has made remarkable progress in transitioning from an agricultural society to a highly industrialized and technologically advanced nation, it must navigate
numerous obstacles, including concerns about unfavorable policies impeding access to globally dynamic regions. In addition to high-tech industries, traditional sectors like footwear and textiles in Taiwan face mounting pressure to relocate their production facilities offshore. Rising labor costs and labor shortages in Taiwan further exacerbate this challenge. This research aims to analyze the adjustments and relocations undertaken by these sectors in response to the evolving economic landscape. By understanding the experiences of these industries, it seeks to shed light on the complexities and potential solutions for Taiwanese traditional relocated industries, which have overcome initial development barriers but now seek sustainable long-term growth amidst rising wages, increased government regulations, and currency appreciation.
Keywords: Relocation, Taiwanese manufacturing sectors, late-developed country, traditional industry, footwear, textiles, local economy, labor costs, technology integration, rising wages

1. 2014 PCC CSR report. (2014). https://www.pouchen.com/download/corp-governance/2014%20pcc%20csr%20report-ch.pdf
2. 2017 Tainan Spinning Corporate Social Responsibility Report. Tainan Spinning Co., ltd. (n.d.). https://www.tainanspin.com.tw/index.php?option=module&lang=en&task=pageinfo&id=482&belongid=405&index=56
3. About Pou Chen. POU CHEN GROUP. (n.d.). https://www.pouchen.com/index.php/tw/
4. Balaguer, A. (2000). Learning and growing in organized markets: A commodity chain perspective of petrochemical development in Taiwan (Doctoral dissertation, Murdoch University).
5. Bernard, M., & Ravenhill, J. (1995). Beyond product cycles and flying geese: regionalization, hierarchy, and the industrialization of East Asia. World politics, 47(2), 171-209.
6. Branstetter, Lee. 2017. “Intellectual Property Rights, Innovation and Development: Is Asia Different?” Millennial Asia 8 (1): 5–25. doi:10.1177/0976399616686860
7. Branstetter, Lee, and Nicholas Lardy. 2008. “China’s Embrace of Globalization.” In China’s Economic Transition: Origins, Mechanisms, and Consequences. Cambridge University Press.
8. Chen, L. I., & KF, C. (2007). The policy, institution and market factors in the development of Taiwan’s Textile Garment Industry. Chung-Hua Institution for Economic Research, Republic of China.
9. Cumings, B. (1984). The origins and development of the Northeast Asian political economy: industrial sectors, product cycles, and political consequences. International Organization, 38(1), 1-40.
10. Frazier, D. (2022, March 2). Book review: The rise of the “Taishang.” Taipei Times. https://www.taipeitimes.com/News/feat/archives/2022/03/03/2003774092
11. Gereffi, G., & Pan, M. L. (1993). The globalization of Taiwan's garment industry. Duke University Program in Political Economy.
12. Galenson, W. (1999). The labor market in Taiwan: Manpower, earnings, and Market Institutions. Taiwan’s Development Experience: Lessons on Roles of Government and Market, 269–285. https://doi.org/10.1007/978-1-4615-4995-6_13
13. Guo, B., &; Teng, C.-C. (2012). Taiwan and the rise of China: Cross-strait relations in the twenty-first century. Lexington Books.
14. Hong, Y.-R., Hong, Y.-S., & Huang, Y.-S. (2010). A case study of Taiwan Shoe Manufacturing Industry; take pou-chen group as example. 2010 7th International Conference on Service Systems and Service Management. https://doi.org/10.1109/icsssm.2010.5530098
15. Iansiti, M., & West, J. (2014, August 1). Technology integration: Turning great research into great products. Harvard Business Review. https://hbr.org/1997/05/technology-integration-turning-great-research-into-great-products
16. Jimeno-Morenilla, A., Azariadis, P., Molina-Carmona, R., Kyratzi, S., & Moulianitis, V. (2021). Technology enablers for the implementation of Industry 4.0 to traditional manufacturing sectors: A review. Computers in Industry, 125, 103390.
17. Lee, B., Chen, J.-R., Glennon, B., Yang, C.-H., & Zolas, N. (2017, October). Does offshoring manufacturing harm innovation in the home country? Evidence from Taiwan and China. https://economics.harvard.edu/files/economics/files/glennon-britta_offshoring_innovation_in_taiwan_wp_6oct_2017.pdf
18. Lukic, R. (2012). The effects of application of lean concepts in retail. Economia. Seria Management, 15(1), 88-98.
19. Merk, J. (2008). Restructuring and conflict in the global athletic footwear industry. Rethinking Globalizations, 79–97. https://doi.org/10.4324/9780203927243.pt2
20. Peng, X. Z. (2019, January 18). The fourth wave of relocation of Taiwanese businessmen is a crisis or a turning point? : Foresight Magazine. https://www.gvm.com.tw/article/55454
21. Rigger, S. (2021). The Tiger Leading the Dragon: How Taiwan Propelled China's Economic Rise. Rowman & Littlefield.
22. Rigger, S. (2023). Tiger leading the dragon: How Taiwan propelled China’s economic rise. Journal of East Asian Studies, 23(1), 179–181. https://doi.org/10.1017/jea.2022.37
23. Rodrigue, J.-P. (2022, August 1). Global Production Networks. The Geography of Transport Systems. The spatial organization of transportation and mobility. https://transportgeography.org/contents/chapter7/freight-transportation-value-chains/global-production-networks/
24. Taiwan’s Cost-Effective and Automatic Footwear Machinery: Footwear Makers’ Strongest Ally in the Pandemic. Taitra. (2020, September 29). https://jakarta.taiwantrade.com/news/detail?id=30462
25. Timm, I. J. (2001, August). Flows in a modern supply chain. ResearchGate. https://www.researchgate.net/figure/Flows-in-a-modern-supply-chain_fig1_2366998
26. Thun, E. (2001). Growing up and moving out: Globalization of ‘traditional industries’ in Taiwan. Industrial Performance Center Special Working Paper 00-004 (June.). Cambridge: MIT.
27. VietnamPlus. (2019, July 2). Vietnam, Taiwan boast huge potential for trade cooperation. VietnamPlus. https://en.vietnamplus.vn/vietnam-taiwan-boast-huge-potential-for-trade-cooperation/155431.vnp
28. Wade, Robert. 1990. Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization. Princeton University Press
29. Wu, C. F. (2019, June 20). The queen of the world’s largest contract footwear manufacturer. CommonWealth Magazine. https://english.cw.com.tw/article/article.action?id=2446