<P> The economy of Taiwan, compared with other major economies in the region, is "at a crossroads", and facing economic marginalization in the world economy, in addition to de-internationalization, low - paid salary to employees and uncertain outlook for personal promotion of staff, which results in human resource talents seeking career opportunities elsewhere in the Asia - Pacific region, and businesses in Taiwan suffer most from being the size of small and medium enterprises only with weaker - than - expected revenue of its hectic business operation for any consideration of further expansion, and overall impedes any attempts at economic transformation of Taiwan from the Taiwanese government . The World Trade Organization has also reviewed Chinese Taipei's economic outlook in 2010 . The international industrial forecast of semiconductor manufacturing, which is the flagship industry of the economy of Taiwan, that faces immense competition ahead with its American counterparts . To conclude, facing the Market failure from Externality, the Taiwan government needs well - thought industrial policy urgently to adapt to the new economic landscape, and as an island economy with lack of natural resources and comparatively lower domestic aggregate demand, Taiwan's highly educated human resources would contribute greatly to Value added Innovation management for expanding Taiwan's international trade . </P> <P> Taiwan has transformed itself from a recipient of U.S. aid in the 1950s and early 1960s to an aid donor and major foreign investor, with investments primarily centered in Asia . Private Taiwanese investment in mainland China is estimated to total in excess of US $150 billion, and official tallies cite Taiwan as having invested a comparable amount in Southeast Asia . </P> <P> Taiwan has historically benefited from the flight of many well - educated, wealthy Chinese to settle on the island: during early Qing Dynasty, the preceding Ming dynasty supporters survived for a brief period of time in exile in Taiwan, and in 1949, as the Chinese Communist Party gained control of mainland China, two million Kuomintang (KMT) supporters fled to the island . </P> <P> The first step towards industrialization was land reforms, a crucial step in modernizing the economy, as it created a class of landowners with capital they can invest in future economic endeavors . US aid was also important to stabilize post-war Taiwan, and it constituted more than 30 percent of domestic investment from 1951 to 1962 . These factors, together with government planning and universal education, brought huge advancement in industry and agriculture, and living standards . The economy shifted from an agriculture - based economy (32% of GDP in 1952) to an industry - oriented economy (47% of GDP in 1986). Between 1952 and 1961, the economy grew by an average of 9.21% each year . </P>

Where does taiwan rank in the world by gdp