Why does Tiawan have a higher economic output per person than China?
There are several reasons why Taiwan may have a higher economic output per person than China.
1. Economic Development: Taiwan has had a longer history of economic development and industrialization compared to China. Taiwan's economy began to modernize in the mid-20th century, whereas China's economic reforms did not start until the late 1970s. This earlier start has allowed Taiwan to develop a more diversified and advanced economy.
2. Technology and Innovation: Taiwan has a strong focus on technology and innovation, particularly in the electronics and information technology sectors. Taiwanese companies like TSMC, Hon Hai Precision Industry (Foxconn), and Asus have become global leaders in their respective industries. This focus on innovation has helped Taiwan maintain a competitive edge in the global market.
3. Education and Workforce: Taiwan has a highly educated and skilled workforce, with high levels of literacy and numeracy. The country also has a strong emphasis on education, with a high rate of enrollment in higher education institutions. This skilled workforce is essential for driving productivity and economic growth.
4. Trade and Investment: Taiwan has a strong focus on international trade and investment. The country has open and liberal trade policies, allowing for the easy flow of goods and services across borders. This has helped Taiwan attract foreign investment and foster economic growth.
5. Governance and Institutions: Taiwan has a stable political system and strong institutional framework, which has helped to create a conducive environment for economic growth. The government has implemented policies to support businesses and foster entrepreneurship, which has allowed the economy to thrive.
Overall, a combination of factors such as economic development, technology and innovation, education and workforce, trade and investment, and governance and institutions contribute to Taiwan's higher economic output per person compared to China.