演講摘要 : This paper investigates the relationship between exchange rate and profit margins when we take the effect of exchange rate on both input and output prices into account. Using the data of 19 two-digit Taiwanese anufacturing industries over the period of 1981-1994, we find a higher degree of net export exposure in Taiwan. Our empirical results suggest that since the 1987 appreciation of the Taiwanese currency, industries take advantage of the appreciation of the NT dollar, enjoying a reduction in the price of imported inputs into production. The market structures, such as market concentration and products are destined for domestic versus export markets, are showed that the profit margins are affected.