The gross national product of Taiwan in 1957 was NT $37,987 million, while that in 1956 was only NT$32,297 million. Not only an 18% increase was registered between these two years, but also the increase· rate was 2% higher than that between 1956 and '55. This reveals that Taiwan economy is still going strong.
Taiwan's gross domestic capital formation in 1957 was NT$5,947 million, which was about 25% higher than the NT$4,731 million in 1956. In the meantime, gross capital formation to gross national product rose from 14.65% in 1956 to 15.66% in 1957 percentage-wise. The higher the capital formation in percentage, the better an economy.
Total consumption of both government and private individuals was NT$34,119 million, or 89.82% of the gross national product in 1957. It was, however, not as high as that of 90.92% in 1956.
The combined total of both investment and consumption expenditures in 1957 was NT$40,066 million, which was 5.4% higher than the gross national product in 1957. (In 1956, it is noted however, the investment and consumption total was 90.92% in relation to GNP.) The deficit was offset by international transfers received, mainly in the form of U. S. Aid.
Free China's national income in 1957 was NT$29,982 million, which was 15% higher than that in 1956. Income per capita in 1957 was NT $2,893, which was 12% higher than that in 1956.
II. FREE CHINA'S NATIONAL INCOME
Taiwan national income for 1951 through 1957 was NT$8,942 million in 1951, NT$13,047 million in 1952, NT$17,882 million in 1953, NT$18,807 million in 1954, NT $22,561 million in 1955, NT$26,041 million in 1956, and NT$29,982 million in 1957. It is noted that Taiwan national income increases every year. It increased by 46% in 1952 over the preceding year, 37% in 1953, 5% in 1954, 20% in 1955, 15% in 1956, and 15.1% in 1957.
If one takes price fluctuations into consideration and computes national income in terms of 1952 dollar, the national income in Taiwan for 1951 through 1957 were respectively as follows: NT$11,528 million in 1951, NT$13,047 million in 1952, NT$15,023 million in 1953, NT$15,631 million in 1954, NT$16,602 million in 1955, NT$17,505 million in 1956, and NT$18,672 million in 1957. While the increase rates were much milder, it increased nevertheless every year. It increased 13.2% in 1952 over that of 1951, 15.2% in 1953, 4.1% in 1954, 6.2% in 1955, 5.4% in 1956, and 6.7% in 1957. For details, please consult the following table.
Table 1 Free China's National Income
If one should go one step further to take population changes into account and compute the per capita income in Taiwan, it is briefly as follows:
Per capita income in Taiwan in terms of current price was NT$1,056 in 1951, NT$1,495 in 1952, NT $1,979 in 1953, NT $2,006 in 1954, NT $2,318 in 1955, NT $2,587 in 1956, NT $2,893 in 1957. The growth rates of per capita income for various years were 42% in 1952, 32% in 1953, 1% in 1954, 16% in 1955, 12% in 1956, and 11.8% in 1957.
Per capita income in Taiwan in terms of 1952 dollar was NT$1,362 in 1951, NT$1,495 in 1952, NT$1,663 in 1953, NT$1,667 in 1954, NT$1,706 in 1955, NT$1,739 in 1956, and NT$1,802 in 1957. The increase rates, which were much milder, were 9.8% in 1952, 11.2% in 1953, 0.2% in 1954, 2.3% in 1955, 1.9% in 1956, 3.6% in 1957. For details, please see table 2.
Table 2 Free China's Per Capital Income
According to a preliminary estimate made by the National Income Division of the Bureau of Statistics, Republic of China, national income at current price for 1958 was NT$31,901 million, which was 6.4% higher than that in 1957. It was NT$19,574 million in 1952 price, which was 4.8% more than the corresponding figure in 1957. Per capita income at current and 1952 price were NT$3,031 and NT$1,860 respectively, which were 4.8% and 3.2% higher in comparison with those in 1957. For details, please see table 3.
Table 3 Preliminary Estimate For 1958
National income statistics is an important economic indicator, by which rates of economic growth are measured. Generally speaking, national income in Free China grows every year. For example, while the highest increments were registered in 1952 and 1953, which were 46% and 37% respectively, the average increment from 1951 to 1957 was about 23%. However, real national income increment, i.e. in terms of 1952 prices, was 13.2% in 1952, 15% in 1953, and at the neighborhood of 4.6% in all other subsequent years. Average annual real national income increment from 1951 through 1957 was 8%.
To compare with foreign countries, we find that real national income increments in West Germany were 15% in 1950, 12% in 1951, and between 7-8% in all subsequent years.
Japan's increments were 18% in 1950, 13% in 1952, and lower increments in all subsequent years. The United States was 15% in 1951, 4% in 1952 and 1953.
From the data listed above, we find our economic growth was still behind West Germany and Japan, both of which furnish good examples for postwar effective economic reconstruction. The comparison brings us to one conclusion: there is still much to be done to raise the Taiwan national income.
III. INDUSTRIALIZATION
Net income originating from various industries in 1957 was briefly as follows: agriculture, 32% of the total; manufacturing, 18.2%; commerce, 16.4%; and so on down the line. For details please consult table 4.
Throughout the years, agricultural income ranked first, being 33.8% in 1951, 35.2% in 1952, 39.4% in 1953, 33.3% in 1954,33.4% in 1955, 32.9% in 1956, 32.0% in 1957. While it always occupied the first place and constituted the backbone of Taiwan economy, its relative importance is however decreasing every year. On the other hand, manufacturing income in most years occupied second place, its relative importance has been increasing every year, being 17.9% in 1951, 14.8% in 1952, 14.3% in 1953, 16.4% in 1954, 16.8% in 1955, 17.1% in 1956, 18.2% in 1957. This indicates that the Taiwan economy is changing steadily toward industrialization.
Table 4 Net Income Originating from Various Industries