An Empirical Study of Choosing the Core Industries of Free Trade Zones

Abstract

Facing a competitive environment, FTZs around the world are no longer limiting themselves to trasitional port activities. Instead, such FTZs are reconsidering value-chain process to enhance FTZ competitiveness. The purpose of this study is to determine the selection of appropriate industries to move into the FTZs for promoting the competitiveness of FTZs. Through analyzing the added values for transshipment operations and the forward and backward linkage with domestic industries, the empirical study shows that "products of the chemicals" and "machinery and electronic components" are selected as the core industries in Taiwan's FTZs.