Is Taiwan a black swan phenomenon for local textile and clothing industry?A robust nonlinear regression-based model for stock exchange prediction

Is Taiwan a black swan phenomenon for local textile and clothing industry? A robust nonlinear regression-based model for stock exchange prediction Local apparel and textile manufacturing industry in Taiwan is a sector of great importance for sustainable economic growth. A stock market is an effective barometer indicating the economic health of a country and Taiwan is a case even more special. However, is Taiwan a black swan phenomenon for local apparel and textile manufacturing industry considering its economic growth and financial perspectives? In addition to existing literature, this research article provides a new robust nonlinear regression-based model for stock exchange prediction for Taiwan stock market. The financial data series used for the econometric analysis include the period from January 2000 to July 2018 for 13 main stock markets from countries all around the globe, such as: Taiwan, Spain, Poland, Hungary, Romania, Canada, USA, Japan, Germany, France, UK, India, and China. The final multiple regression equation provides a new prediction model for Taiwan’s main stock market index. A sustainable economic growth in Taiwan is necessary to achieve major objectives such as social justice, poverty alleviation and natural environment protection. The stock market in Taiwan plays an essential role in order to stimulate economic growth and technological progress by attracting foreign investment and foreign capital. In a globalized economy, the inter-linkages between stock markets are complex and can significantly influence Taiwan’s sustainable development. Keywords: textiles, apparel industry, manufacturing sector, emerging stock market, economic growth, sustainable development, economic sustainability, nonlinear regression-based model