A Study on Assessment Criteria of Policy Competition to Attract Foreign Direct Investment in Taiwan High-Tech Industries

Abstract

Capital accumulation is a major factor of economic growth, and economic growth depends on investment. Foreign Direct Investment not only quickly ladles out the flow of domestic capital, but also has a significant effect on domestic economic growth, introducing new products and new technologies which results in so-called technology spillover effect. The main purpose of this study, for the various competition policy tools, aims to identify the target, to make the assessment criteria, and to set significance. And these steps establish a hierarchical structure to attract foreign direct investment in Taiwan high-tech industries, hoping to find the most competitive policy tool. First of all, expert interviews and Fuzzy Delphi Method to extract 3 sectors, 5 dimensions and 20 criteria. Second, Analytic Hierarchy Process is used to design expert questionnaire, to measure the dimensions and significance of each criteria. The result of analysis reveals that the following five dimensions are listed according to their importance: fiscal incentives, financial incentives, subsidized services, privileges, regulatory incentives. And the first five criteria of the importance principle are investment grants, export-based incentives, capital-investment-based incentives, profit-based incentives, and credit guarantees