Alternate Author Name(s)

Dr. Po-Chih Lee, MA '70, PhD '72

Document Type

Dissertation

Date of Award

1972

Keywords

Economic assistance, American, Taiwan, Economic conditions

Degree Name

Doctor of Philosophy (PhD)

Department

Economics

First Advisor

William H. Waldorf

Second Advisor

John E. La Tourette

Third Advisor

Alfred B. Carlip

Series

Science and Mathematics

Abstract

There are two serious problems which are invariably faced by underdeveloped countries in their early stages of development; one is a lack of savings to finance investment to sustain a given growth rate of GNP, and the second is a shortage of foreign exchange required to import intermediate and capital goods to support production. This structural disequilibrium can keep underdeveloped countries from proceeding toward industrialization which is often their main hope for increasing income.

Fortunately, advanced countries have been providing public grants and loans to underdeveloped countries in order to help overcome this structural disequilibrium. The inflow of this foreign capital has been used to finance import requirements or to supplement domestic savings.The aid-development relationships have been empirically studied in many underdeveloped countries, and they have shown that foreign aid can be a powerful tool for promoting economic development in these countries.

The purpose of this study is to assess the contribution made by foreign economic assistance to Taiwan's economic development and growth during 1953-67. This includes the period of Taiwan's First, Second, and Third Four—Year Plans, and the first three years of the Fourth Four-Year Plan.

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