In this study, we assume that socio-economic development is the underlying mechanism for population changes. In the past 50 years, Taiwan has experienced drastic socio-economic changes and rapid population change. Simultaneous equations are thus used to integrate the effect of Taiwan's socio-economic factors on the projection of its age-specific fertility rate (ASFR). The estimated ASFR is then used to make population projections for Taiwan in the period 2004-2033. The results of our low and medium projections are close to the official (CEPD) medium-high projection for the same time period. The results of the high projection for both studies are rather similar too. Specifically, if Taiwan's socio-economic development grows at a high variant, its fertility would rebound to replacement level by 2033. If it follows the medium variant, fertility would rise to 1.6 births per woman. But if Taiwan's future socio-economic development grows sluggishly as in the assumed low variant case, Taiwan's fertility would remain at a lowest-low level.