ABSTRACT
Economic development from the end of World War II through the 1950s was characterized by efforts to promote growth incentive in the agricultural sector coupled with import-substituting industrialization. The economy of the Republic of China has had to adjust to changing domestic and external conditions. Whether the economy of the Republic of China can successfully restructure its industrial sectors and attain the high rate of economic expansion will depend to a great extent on ensuing technology transfers and an easing of protectionism in the industrialized countries. Technical progress is an indispensable determinant of sustained economic growth. The economy has been beset with difficulties, however, due to the slowdown in the rate of technical progress. The rapid growth in world trade in the 1960s and the early 1970s has been replaced by slow growth and increasing protectionism in industrialized countries against manufactured exports from developing countries.
