ABSTRACT
Economic development in the Republic of China can be considered highly satisfactory, as rapid growth has been accompanied by stable prices, successful labor absorption, and improved income distribution. The reason is that food processing is an extension of agriculture, which has very low elasticity of demand as income grows. Originally the major product in food processing was sugar, which accounted for 45 percent of food processing production in output value and 85 percent of food processing exports. The development of labor-intensive light manufacturing made many important contributions, particularly to the reduction of unemployment and to improved income distribution. According to Professor W. W. Rostow, after a country's net investment comprises more than 10 percent of the national income, the country can be regarded as having satisfied the necessary condition for "take off."
