RESEARCH PROJECT

Research Division

Research Projects for FY2025

Changes in the spatial structure of Taiwan’s outward FDI and its economic impacts on the surrounding countries (regions)

Staff:DAI Erbiao

Professor, Director of Research Division

In recent years, significant attention has been given to the changing spatial structure of the outward foreign direct investment (FDI) from Taiwan, which hosts a world-class semiconductor industry. Examining the distribution of Taiwan’s outward FDI by country or region, Mainland China consistently ranked first over the past 30 years from 1993 to 2022. However, while investment in Mainland China accounted for over 80% at its peak in 2010, its share has been on a downward trend, declining to 11.4% in 2023. In contrast, investment shares in the United States, ASEAN, Europe, Japan, and other regions have expanded significantly.

Following research conducted in the 2024 fiscal year, this study will continue to focus on changes in the spatial structure of Taiwan’s outward FDI. It will analyze trends and influencing factors from three key perspectives: (1) changes in the international political environment in the Trump 2.0 era, (2) Taiwan’s New Southbound Policy under the Democratic Progressive Party (DPP) authority, and (3) the investment environment in major recipient countries. Additionally, this study will place particular emphasis on assessing the economic impact of these changes on surrounding countries and regions, particularly Kyushu.

A study of economic growth and air quality dynamics in China with a focus on regional disparities

Staff:Alvaro DOMINGUEZ

Assistant Professor

China’s rapid economic growth and industrial expansion have led to severe air pollution, raising concerns about public health. This study examines the income-pollution relationship using a new dataset that expands that from Wu et al. (2022) by incorporating more cities and extending the time period. Using spatial analysis methods, this study assesses whether income growth improves air quality while accounting for spatial spillover effects. Additionally, this study corrects for population density to better isolate demographic and economic effects, recognizing the existence of regional disparities. The expanded dataset allows us to evaluate whether previous findings hold across more diverse urban settings and a longer time horizon. This study also examines whether disparities in pollution and income are widening or converging, offering insights into the environmental sustainability of China’s current path. The findings can provide policy implications for balancing economic growth with environmental protection.

Does regional DX improve regional and individual well-being? Evidence from pilot policies and survey of municipalities in Japan

Staff:KOMATSU Sho

Assistant Professor

This study empirically examines whether regional DX in Japan improves regional and individual wellbeing, and if so, what the mechanism is. Regional DX in this study will be evaluated using a pilot policy (survey on Regional DX Promotion Lab) as a quasi-natural experiment and a questionnaire survey in municipalities (AI and RPA demonstration experiment and introduction). Two specific researches will focus on (1) whether regional DX in Japan improves regional well-being (analysis at the prefectural or municipal level) and (2) whether regional DX in Japan improves individual life satisfaction (analysis at the individual level). Regarding (1), this study also analyzes subjective and objective indicators based on the fact that the Regional Well-being Index consists of four categories that measure the level of happiness and life satisfaction in a region and three factor groups (living environment, local relationships, and personal way of life). Regarding (2), individual life satisfaction will be measured in terms of overall life satisfaction, and analysis will also be conducted using life satisfaction by category.