This chapter investigates the reasons behind the growth of the services industry in Taiwan. It suggests that the major contributors to the growth in import services are the increases in the imports of goods and per capita income and the decreases in the relative prices of import services. The regression analysis found that the three important determinants of the services trade are the trade in goods, per capita income levels and the relative price of service. This chapter also provides an overview on the time-series changes of Taiwan's services trades.

This chapter investigates the reasons behind the growth of the services industry in Taiwan. It suggests that the major contributors to the growth in import services are the increases in the imports of goods and per capita income and the decreases in the relative prices of import services. The regression analysis found that the three important determinants of the services trade are the trade in goods, per capita income levels and the relative price of service. This chapter also provides an overview on the time-series changes of Taiwan's services trades.