The effects of industrial diversification on regional unemployment in Taiwan: is the portfolio theory applicable?

Chiang, Shu-hen

doi:10.1007/s00168-008-0219-x

Cited by 27 publications

(25 citation statements)

References 21 publications

(26 reference statements)

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“…Drawing on the finance portfolio theory of Markowitz (1959), researchers (e.g., Conroy 1974;Brown and Pheasant 1985;Hunt and Sheesley 1994;Spelman 2006;Chiang 2009) have argued that regional and local policies designed to promote economic stability is analogous to an investor selecting a set of financial instruments in creating an investment portfolio. Through the use of incentives, selective investments and preferential variances, local policy-makers are in essence selecting a set of industries in which to invest, thus creating a 'community industrial portfolio' (Conroy 1974, 32).…”

Section: Introductionmentioning

confidence: 99%

Spatial variations in the relationship between economic diversity and stability

Deller

Watson

2015

Applied Economics Letters

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Section: Introductionmentioning

confidence: 99%

Spatial variations in the relationship between economic diversity and stability

Deller

Watson

2015

Applied Economics Letters

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“…The sample period is restricted by the fact that the statistics for local banking are available only since 1997. Moreover, the industrial classification has increased to 37 sectors and the index of industrial diversity in this study is more robust than the index in Chiang (2009).…”

Section: Data Descriptionmentioning

confidence: 85%

“…In addition, Taiwan is a small open economy with a high ratio of economic output from exports and hence the advance in international competitiveness comes from the infusion of massive public resources in some specific regions and industry segments, namely, a "growth pole" strategy, which may result in serious regional divergence. This policy makes it more vulnerable to economic risks (Chiang, 2009). …”

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confidence: 99%

Financial Education on Bank Lending and Economic Volatility in Taiwan

Cortes

Chiang

2017

EURASIA J MATH SCI T

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Education regarding money and banking always tells us that banking is a critical point for macroeconomics. However, there is not enough evidence to further prove the relationship between banking and volatility. In our view, an integration of small and medium-sized enterprises (SMEs) with serious financing constraints, small open economy and bankbased financial system can provide the best opportunity to explore bank-volatility nexus. Fortunately, Taiwan is the most notable case to offer the key to an understanding of banking and volatility for our students of finance. There is sufficient evidence based on panel data analysis with spatial dependency to support the significance of regional bank lending (credit supply) rather than the stock market (credit demand) in explaining volatility. It is clear that the role of bank system in volatility in Taiwan deserves explicit emphasis.

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“…Moreover, Simon (1988) extended the search theory from industrial structure to the local economy in order to advance the view that labour mobility between diverse industries within a specific region can reduce regional frictional unemployment. While Malizia and Ke (1993) and Izraeli and Murphy (2003) supported his perspectives, Chiang (2009a) expressed a similar view to that of Neumann and Topel (1991) by arguing that regional unemployment risk can be explained by portfolio theory.…”

Section: Review Of Unemployment and Shift‐share Analysismentioning

confidence: 88%

The sources of metropolitan unemployment fluctuations in the Greater Taipei metropolitan area

Chiang

2012

Papers in Regional Science

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While past macroeconomic studies based on the natural rate hypothesis have tended to limit their discussions to cyclical unemployment, this paper applies shift‐share analysis to additionally consider both frictional and structural unemployment, which is composed of sectoral shifts and geographic mismatches. The results of the estimation confirm that the recent high unemployment in the Taipei metropolitan area mainly stems from both sectoral shifts and frictional unemployment. Therefore, how to smooth the industrial transformation and more flexible turnovers should be critical in reducing the pressure brought about by such unemployment today. Resumen Mientras que los estudios macroeconómicos previos basados en la hipótesis de la tasa natural han tendido a limitar sus discusiones al desempleo cíclico, este artículo aplica un análisis shift‐share para considerar adicionalmente tanto el desempleo friccional como el estructural, formado este por cambios sectoriales y desajustes geográficos. Los resultados de esta estimación confirman que el elevado desempleo sufrido recientemente en el área metropolitana de Taipei proviene principalmente tanto de cambios sectoriales como del desempleo friccional. Por ello, tanto la manera de suavizar la transformación industrial como una renovación del personal más flexible deberían ser críticos para reducir la presión provocada por el desempleo actual.

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The effects of industrial diversification on regional unemployment in Taiwan: is the portfolio theory applicable?

Abstract: J61, J64,

Cited by 27 publications

References 21 publications

Spatial variations in the relationship between economic diversity and stability

Spatial variations in the relationship between economic diversity and stability

Financial Education on Bank Lending and Economic Volatility in Taiwan

The sources of metropolitan unemployment fluctuations in the Greater Taipei metropolitan area

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