An Evaluation of Free Trade Port Zone in Taiwan

Abstract

This study focused on the development of FTPZs in Taiwan and examined factors influencing business activities in FTPZs and their degree of importance for improving the operational environment in FTPZs. A performance assessment of companies since operating their businesses in FTPZs was also undertaken. Data for the study were obtained from a questionnaire survey distributed to MNCs operating in FTPZs in Taiwan. The importanceperformance analysis (IPA) technique was employed to analyse the survey results. Five factors were found to have a high degree of importance for business operations in FTPZs: government administration efficiency, cheap rates and charges, simplified customs procedures, clear regulations, and free tax incentives. Further, results indicated that firms in FTPZ had increased their performance in terms of reputation, investment, customer satisfaction, and revenue. The study provides insight into the evaluation and policy suggestions of FTPZ for government in Taiwan.