Spatial Heterogeneity and Its Determinants of Taiwan Firms in Mainland China

Yingbo Li

School of Public Policy and Management, Tsinghua University, Beijing, China.

DOI: 10.4236/ajibm.2013.31010                

Abstract

Taiwan investment in MainlandChinaover the last 20 years has shown uneven distribution characteristics in the eastern, central and western regions. What factors led to this type of investment pattern? Did this characteristic continue or change after ECFA? Based on statistical data and the investment conditions, this paper used Moran’s I index analysis method to measure the heterogeneity of the spatial distribution ofTaiwaninvestment in MainlandChinaover 20 years. Then the study applied ordinary and spatial panel analyses to discuss impacting factors of nearly three years ofTaiwaninvestment in MainlandChina. The outcome shows thatTaiwaninvestment in MainlandChinahad a double-fixed timing effect and special effect during the last three years, which impactedTaiwaninvestment in different regions. Finally, this study proposed the regional strategy choices of theTaiwaninvested enterprise in MainlandChinain the future at four levels.

Keywords

Taiwan Firms; Spatial Heterogeneity; FDI; Panel Data

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	X. J. Zou, “The Historical Analysis of 1979-2000 Taiwan Investment in Mainland China,” Information Economics and Law, Vol. 24, No. 3, 2005, pp. 30-35.
[2]	M. C. Yu, “The Effect of Mainland Employment of Taiwan Investment in Mainland China-Based on the Empirical Analysis of Panel Data from Seven Provinces and Municipalities,” International Trade and Economy Exploration, Vol. 18, No. 8, 2008, pp. 62-66.
[3]	P. X. Nie, “New Situation and Countermeasures of Taiwan Investment in Mainland,” International Economic Cooperation, Vol. 25, No. 9, 2009, pp. 32-35.
[4]	A. Yan, “The Economic and Political Research of Taiwan Investment in Mainland China—The Reformation, Opening up and Modernization of the Mainland and Taiwan Compatriots in Three Decades,” Chinese Communist Historic Research, Vol. 22, No. 1, 2011, pp. 53-69.
[5]	X. M. Duan, “A Comparative Analysis of Mainland ChinaBased Taiwan Investment Environment,” World Economics, Vol. 25, No. 2, 2006, pp. 71-81.
[6]	S. G. Dai and P. S. Dai, “The Factor Analysis of the Spatial Correlation of Taiwan Investment in Mainland Areas,” Taiwan Research Bulletin, Vol. 28, No. 4, 2008, pp. 48-55.
[7]	Z. Wang and Y. X. Wang, “The Integration Study of Taiwan-Funded Enterprise in Mainland China Business Economic Issues,” Vol. 31, No. 4, 2009, pp. 56-58.
[8]	S. D. Hu, “The Choice of Regional Institutional Environment and the Location of Taiwan Investment in Mainland China,” Taiwan Research Bulletin, Vol. 28, No. 5, 2010, pp. 64-72.
[9]	S. G. Dai and W. H. Ceng, “The Performance Comparison of Taiwan Investment in Mainland China Gathering Area and Taiwan Areas Economic and Trade Cooperation— Empirical Research Based on the DEA-Tobit Method,” International Trade Issues, Vol. 37, No. 3, 2011, pp. 167-176.
[10]	J. Y. Sheng, “The Impact of Taiwan High-Tech Industry Investment in the Local Industrial Chain Formation in Yangtze River Delta,” Straits Technology and Industry, Vol. 21, No. 1, 2008, pp. 24-27.
[11]	G. Q. Cheng and L. Z. Chen, “The Study of the Development of Taiwan Entrepreneurs Direct Investment in Jiangsu Study,” SAR Economy, Vol. 28, No. 12, 2010, pp. 57-58.
[12]	F. Li, “Review and Policy Ideas of the Development of Taiwan Investment in Fujian,” Fujian Normal University (Social Science Edition), Fuzhou, 2010.
[13]	F. J. Wu and F. Li, “The Location Differentiation and the Cause Analysis of Taiwan Entrepreneurs’s Direct Investment in Agriculture in the Mainland,” Agricultural Economy, Vol. 31, No. 11, 2011, pp. 73-79.
[14]	W. Jiang, “The Dynamics and Influencing Factors of Taiwan Investment in Shenzhen,” Reform and Strategic, Vol. 23, No. 1, 2007, pp. 100-103.
[15]	Y. L. Wang and J. Wang, “The Focus Shift of Taiwan Investment in Mainland China: Stages, Characteristics and Influencing Factors,” Southeast Academic, Vol. 23, No. 2, 2010, pp. 61-69.
[16]	X. M. Duan and Z. Y. Zhang, “Substitute or a Complement: A Dynamic Analysis of Taiwan Investment and the Cross-Strait Trade,” World Economic Research, Vol. 30, No. 2, 2011, pp. 80-86.
[17]	Y. B. Zhang, “The Location Choice Model and the Concentration Study of Direct Foreign Investment,” Ph.D. Thesis, Northeastern University, Shenyang, 2008.
[18]	S. J. Chang and S. Park, “Types of Firms Generating Network Externalities and MNS’s Co-Location Decisions,” Strategic Management Journal, Vol. 26, No. 7, 2005, pp. 595-615. doi:10.1002/smj.464
[19]	X. H. Kang and W. Z. Liao, “The Empirical Research That Affects the Amount of Taiwan Investment in Mainland China and Factors of Investment Location,” Jiaotong University Journal of Management, Vol. 26, No. 1, 2006, pp. 15-23.
[20]	W. H. Davidson, “The Location of Foreign Direct Investment Activity: Country Characteristics and Experience Effects,” Journal of International Business Studies, Vol. 11, No. 2, 1980, pp. 9-22. doi:10.1057/palgrave.jibs.8490602