The World Financial Crisis: Impacts on GDP and International Trade in Taiwan

Abstract

Today's financial markets are--due to globalisation--more interlinked than ever before. The US-based subprime mortgage crisis 2007-2009 is therefore developed to a global crisis. This study aims to investigate the effects of that crisis on Taiwan, focusing specifically on GDP and Taiwan's international trade. Analysis results in GDP to have practically fully recovered to precrisis levels. Taiwan's international trade is stagnating in the postcrisis era. Investigations have further shown that Taiwan is becoming more dependent on China, a trend that was fuelled by the crisis.