Abstract
Taiwan is often perceived as an ‘economic miracle’ because of how it has undergone a great deal of development as a result of exports. Contrary to the strategies of other Third World countries, Taiwan's planners relied not on direct foreign investment but on capital mobilization within the domestic private sector for promoting development. While also implementing a subcontracting system to further amplify the growth experienced by manufactured exports, small and medium enterprises have accounted for about 65% of exports in the later part of the 1980s and became prevalent players for the region's trading economy. Utilizing data collected in Hsin Hsing, this chapter attempts to describe how production and reproduction emerged in this village, how this has contributed greatly to the country's development, and how such business are organized in Taiwan's rural areas.

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