Income Inequality In Taiwan Case Study

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Income inequality in Taiwan Why do I think it is a microeconomics issue? Microeconomics is the study that focuses on understanding how consumers and producers make choices and how they interact in a particular market (Mankiw & Taylor, 2014). Income inequality refers to the differences in income between individuals or households, or between different groups, areas, or nations. It is a term used to describe an uneven distribution of household or individual income in an economy (Black, Hashimzade & Myles, 2013). There is no strict restriction on defining whether income inequality is a microeconomics or a macroeconomics issue, because different situations will need to use different measurements and data sources, which will lead us to different …show more content…

I have also read some articles discussing the negative effects of income inequality: in 2000 Mo claimed "income inequality penetrate into every aspect of an economy which significantly reduce the efficiency and hence the rate productivity growth", in 2010 Verme learned that income inequality could have negative, and significant effect on life satisfaction. As a Taiwanese national, I want to explore further this issue associated with Taiwan. This assignment focuses on studying the microeconomics aspect of income inequality in Taiwan, which is defined as the gap that exists between the rich and the …show more content…

Since 1980 Taiwan’s economy has been heavily relying upon an open economic system with the view of promoting foreign trade to lead to economic development. Policymakers in Taiwan emphasise a "liberalisation and internationalisation" policy to stabilise the economy. For the purpose of reducing government control and regulation in economic spheres as well as opening up the Taiwanese market to foreign businesses without unnecessary limitations to allow foreign products to compete with local products in the domestic market (Liou,

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