RELATIVE INFLUENCE OF AREA AND YIELD ON TAIWAN'S MAJOR CROPS

Taiwan has attained a remarkable economic development of its agricultural industry since World War II. During recent years; Taiwan's agriculture played a very important role in its economic development. Agricultural development has been based on the increase in productivity as shown by change in agricultural output as related to changes in resource inputs and technological innovation. In Taiwan's case, there were two general factors affecting the expansion of agricultural output: (1) change in resource inputs, and (2) technological advance. Resource inputs included land, labor and capital, especially increase in capital input, such as, investments in irrigation, drainage, and flood control, and expenditures on fertilizer, pesticides, and other capital items. Technological advance in crop production has resulted in increase in crop yields owing to better crop varieties, increased use and timely application of chemical fertilizer and pesticides, rotational irrigation to maximize use of available water supplies, better cultural practices, and the diffusion of new knowledge which made it possible for farmers to adopt the new techniques.