The Influence Of Taiwan's Investment In Mainland On Cross-Strait Export Performance In The US

The investment of Taiwan businessmen to Mainland,bringing in many production and management technologies and abundant funds,combined with the rich local land resources and abundant driving force,will help the Mainland's industrial development.The impact of investing in the Mainland on Taiwan's industrial development is also very important.It is necessary to analyze Taiwan's investment in the Mainland,international competition on both sides of the strait,and cross-strait import and export trade,so as to understand the cross-strait trade competition between the international market and the cross-strait market,so as to provide reference for cross-strait inter-governmental industrial investment and trade policies.This study divides the export products of Taiwan's industry into two sectors: agricultural and non-agricultural.RCA and TSC are used to discuss the comparative advantages and absolute advantages of the products of the two sectors in Taiwan in the US market.Second,we use game theory to construct a competition model in which two export regions export to the third region market at the same time,and discuss the impact of direct investment on export market performance.Third,we use the time series model to analyze the influence of Taiwan's investment in Mainland(including overall,agricultural,and non-agricultural)on the products of Taiwan and Mainland(including overall,agricultural,and non-agricultural)in major international markets(the US).Fourth,we use the constant market share model to decompose the export valuefrom Taiwan and Mainland to the US market;and use time series models to analyze the impact of Taiwan's investment in Mainland on the competitiveness of Taiwan and Mainland's products in major international markets(the US).The main findings of this article are: first,in terms of competitiveness analysis,the international competitiveness of Taiwan's agricultural products in the US market is relatively low.Over the years,its TSC has been negative,while the RCA is only about 0.02,indicating the absolute competitiveness of Taiwan's agricultural productsis insufficient;at the same time,it does not have a comparative advantage.In terms of non-agricultural exports,its TSC has been positive for a long time,and at the same time,its RCA is greater than 1,indicating that Taiwan 's non-agricultural exports are not only more competitive;but also have a demonstrative comparative advantage.Second,the impact of Taiwan's investment in Mainland on Mainland's exports to the United States has a positive effect for a long period of time,but the short-term mutual influence is not significant.Third,the competitive effect of Mainland's overall product exports to the United States will negatively affect Taiwan's competitiveness of the United States;Taiwan's non-agricultural products' export effects to the United States will negatively affect Mainland's non-agricultural products' export effects to the United States.It implies that there is a competitive relationship between the two regions.Fourth,in terms of the impact of investment on export competition,the competitive effect of investment in Mainland on cross-strait product exports is not significant.This result shows that the changes in Taiwan and Mainland's competitiveness in the US market are not entirely from Mainland.The relationship between the two sides of the strait has been rapidly frozen,and the economic confrontation has become more serious.The situation of the Mainland-US trade war has increased,which will have a negative impact on cross-strait economic and trade and economic development.Through the previous discussion,Taiwan's investment in the mainland,whether it is overall,agricultural or non-agricultural investment,will promote cross-strait exports of products to the US market in the long run.The advantage for Mainland is to provide good capital,technology and talent;the benefit to Taiwan is that it can improve the efficiency of resource allocation.However,as far as the competitive effect is concerned,cross-strait products seem to have a competing relationship in terms of overall trade and agricultural products.This is subject to further deepening of industrial cooperation and division of labor between the two sides of the strait.Under the improvement of the competition effect of the US and non-agricultural products in Mainland,Taiwan enterprises will be further attracted to the mainland for non-agricultural investment.Therefore,it is necessary for Mainland to continue to deepen reforms and improve its investment environment in order to attract Taiwan's businessmen to further invest in the mainland.Here,it is recommended that the relevant departments of Mainland government,in the process of economic reform and transformation,can develop development experiences and give various preferential treatments to Taiwan's competitive industries to attract Taiwan's businessmen and achieve the goal of mutual benefit and reciprocity between the two sides.