This paper examines the effects of moving-abroad industries and the employment of foreign labors on the adjustment of industry structure in the recent decade in Taiwan. By presenting the evidences from the investigation, it demonstrates the contemporary economic structure in Taiwan, and intends to provide suggestions to policy-makers. According to the estimation results in the study, the relationship between industry outputs and the employment of foreign labors is insignificant statistically and varies across sectors. The coefficients of foreign investment variable indicating the foreign direct investment by domestic firms are all negative but insignificant statistically, which implies that the tendency of firm's moving-abroad from the domestic industries results in slightly negative effects on the domestic economy.
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