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The purpose of this thesis is to investigate the lead-lag relationship between the Manufacturing Inventory Indexes and Sales Indexes with Taiwan's Business Cycles and the Taiwan Stock Exchange Weighted Index. The thesis applies the data published by the Department of Statistics, the Ministry of Finance; Taiwan's National Development Council; and Taiwan Economic Journal. The sample period covers from Jan 1994 to Dec 2018, a total of 300 months. The results of the research are as follows: 1. Compared with the average index of Business Cycle and the Stock Market, the Inventory Indexes lead the Sales Indexes to reach the peaks and troughs, which indicates that the Inventory Indexes can be used as the leading indicators of the Sales Indexes. 2. The Inventory Indexes lead the Business Cycle and the Stock Market index to reach the troughs, which indicates that the Inventory Indexes can be used as the leading indicators of the Business Cycle and the Stock Market index. 3. The Average Percentage of Variance of the Inventory Index is higher than the Sales index, which indicates that the Inventory Index is affected by the Business Cycle more than the Sales index.
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