Abstract
In this thesis, we examine the duration of Taiwan exports in the electronics sector during the periods, 1997-2009. We find that the trade relationships are very dynamic at the product level, and the duration of the electronic products is, in general, very short and unstable. On average, the trade relationships only survive for 4 years. Furthermore, we find significant differences in the survival status between the Parts & Components (P&C) and the Final Products (FP) industries. Comparing with the FP, products in the P&C industry have longer trade duration, higher survival rates, and face a lower default risk (Hazard rate). We next use the Cox hazard model to analyze the impacts of the country-specific factors (such as country size) as well as product specific factors (demand elasticity) on trade duration. The results indicate that these variables are important determinants of trade duration: countries share common language face a lower hazard rate; products with a lower elasticity of import demand, higher initial trade volumes and more trade partners also have lower hazard rates. In addition, products in the Parts & Components (P&C) face a 41% lower hazard rate relative to products in the Final Products (FP) industries.