Since the 1990s, Taiwan has promoted the upgrading of industrial structure, and the financial crisis has brought about major economic shocks. After Taiwan became a World Trade Organization (WTO) member in 2002, the total trade volume increased significantly under the trade liberalization economic system. The trade sector has become the main source of Taiwan's economic growth. As energy consumption expands with economic growth, the instability of international energy prices has become an important factor hindering Taiwan's future economic development. Taiwan's energy demand is over 99% dependent on imports, making Taiwan's economic growth and energy consumption really closely related. This study has found that the source of growth has transformed from domestic final demand effect and exports effect to technical coefficients effect and self-sufficiency Coefficients effect. The financial crisis has increased the "self-sufficiency" coefficient effect and the technical coefficient effect, and all other industries except the "agricultural sector" have shown significant growth. On the other hand, the source of energy consumption has changed after the financial crisis. This also confirms that Taiwan's economic growth is closely related to energy consumption, indicating that energy shortage has indeed had an important impact on Taiwan's economic development.
The economic growth pattern of investment has been proved in Asian countries, but it often falls into development bottleneck after the economy develops to a certain extent, especially in countries with lack of resources. One of the important reasons is the supply of energy and electricity. Establishing a sustainable development path requires thinking about economic development and environmental protection at the same time. This will face how to establish a balanced industrial structure and a stable electricity supply system, and investment in production equipment and research and development (R&D) will be an indispensable factor. R&D investment and equipment investment contribute to economic growth. This study employs a dynamic industry-related model to estimate the economic spillover effect from both R&D investment and equipment investment. The present study attempts to measure (1) the difference in the investment multiplier of R&D investment and equipment investment, (2) the difference in the employment creation effect of investment R&D and equipment investment. Analysis of future industrial development strategies needs to consider energy and electricity consumption. This study will estimate (3) the impact of equipment investment and R&D investment on power consumption, and compare the differences between the two on the industry. This study uses mathematical dynamic industry-related models to estimate (1) ~ (3) and found that different investment methods will make the inter-industry economy have different spillover effects, and also show different demand in power consumption.
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