“…find that Taiwan's growth acceleration began in 1962, lasted 32 years, and increase real per capita income by a factor of 36, the largest in their sample of rapid growth countries.Kuo (1983, p. 149) notes that exports accounted for 35 percent of output growth from 1961-66 and that "export expansion was the dominant source of manufacturing growth" in the 1960s (308). Some of the leading studies of Taiwan trade and exchange rate policies includeHsing (1971),Lin (1973),Ho (1978),Galenson (1979),Little (1979),Scott (1979),Liang and Liang (1981),Li and Liang 1982(),Kuo (1983), and Panagariya (2019).3 He argues that the crucial factors behind Taiwan's export growth were the tax rebate for exports, the removal of import restrictions, the adoption of a unified exchange rate, and the depreciation of the New Taiwan dollar.4 Haggard (1990) andHaggard and Pang (1994) examine the political and economic factors behind Taiwan's decision to move towards economic openness. They are closest in spirit to this paper.…”