: Taiwan’s Path to Trade-Driven Competitiveness (2000–2024): The Enduring Influence of Export Sophistication.

This study investigates Taiwan’s trade transformation between 2000 and 2024, focusing on how export sophistication and geoeconomic strategy have shaped national competitiveness. Utilizing Economic Complexity Index (ECI) scores, EXPY indicators, HS-coded export data, and macroeconomic metrics, the research traces Taiwan’s shift toward high-value, technology-intensive sectors—especially semiconductors. Empirical analysis employs fixed-effects panel regression and a time-series VAR model to examine the relationship between export complexity and key economic outcomes, including GDP growth, productivity, terms of trade, and global market share. Results reveal that export upgrading into complex, knowledge-intensive products—measured through rising EXPY and ECI—has significantly enhanced Taiwan’s macroeconomic resilience and competitiveness. Moreover, Taiwan’s strategic positioning within global value chains and alignment with geoeconomic blocs during the U.S.–China trade tensions underscore how external policy environments can amplify the benefits of internal industrial transformation. The findings offer theoretical and practical implications for how small, open economies can leverage export complexity and strategic trade alignment to sustain long-run growth and resilience in a volatile global trade system.