Taiwan has a capitalist economy, which means that privately-owned companies decide on production techniques and operate to earn a profit. Banks and industrial companies that were previously owned by the state are now also privately owned. The economy of Taiwan is the 19th largest in the world in terms of purchasing power parity. It is considered an advanced economy by the International Monetary Fund and has the highest Global Entrepreneurship Index in Asia. Additionally, it ranks as the 5th largest economy in the region of Asia.
Taiwan has an independent economy with Foreign trade has been the engine of rapid growth during the past 40 years. Taiwan's economy remains export-oriented. Considering the first eight months of 2017, exports went up 12.5% and imports rose at a faster 13.8%. The trade surplus increased by 6.7% to USD 33.9 billion.
Taiwan has 2 international airports and 7 International Sea Harbors. Taiwan has complete railway networks throughout the island. Taiwan's as a manufacturing hub has played an important role in the worldwide electronic goods market over the last 20 years. Taiwan maintains a stable industrial economy as a result of rapid economic growth and industrialization.