Study on the Assessment Indicators of Industrial Hollowing Out in Taiwan

： Chih-Feng Lien
： Industrial hollowing out， Gross domestic product， Grey entropy， Weighting

： The paper mainly discusses the problems ofhollowing out of domestic industries. It is based onrelevant literature discussion of industrial hollowing out,and whether it is possible to happen in Taiwan. Thepaper first construct the process model of hollowing outof industries, and screen the relevant 9 indicators,including the ratio of industrial output to grossdomestic product(GDP), manufacturing employment,the average manufacturing wages, fixed capital gross,total surplus, direct investment value (FDI),unemployment rate, the index of labor productivity, andeconomic growth rate. Next, the grey entropy is used asthe math model to analyze the weighting of each impactfactor. The results show that slowdown in the economicgrowth rate has the great impact on the hollowing out ofdomestic industries, followed by surplus reduction ingross, increased direct investment value, and increase inunemployment rate. However, changes in the industrialstructure has little effect, that is, the ratio of industrialoutput to GDP, and changes in manufacturingemployment have little impact on hollowing out ofindustries, which is correspond to current economicscholars’ opinions.

Journal of Grey System(Volume 16)
： 001~008
： 2013