Abstract
This paper reveals a meticulous process of the trade collapse during the financial crisis of the exports of electronic parts and components in Taiwan by using well-differentiated data and the sampling of different time interval. We show the samplings of different time interval dominate the result of intensive or extensive margins which is mattered the most. The evidence suggests that the financial crisis accompanied trade collapse with the reduction of the volume, and some of the items exited in the first or second quarter of 2009.We discover that the items already existed in 2008 dominate the recovery of trade from 2009 to 2010, and this doesn’t violate the declaration by the former that “If the intensive rather than extensive margin mattered the most, trade will bounce back relatively quickly once conditions improve”. In view of the above, we believe that the conditions improved abroad would boost Taiwan’s economy.In our consideration of investigating a sector which is likely to be credit-constrained, the price goes up obviously on average. We provide some evidence that supply sides have a little market power during the financial crisis. A reasonable explanation is that firms which have the ability to supply most of the demand would have the power in charging a higher price.