| At the beginning of 2010, Premier Wen Jiabao in his government work report indicated that "support the economic zone on the west coast of the Taiwan strait play a pilot role in the cross-strait exchanges and cooperation." "Opinions of The State Council on the support of the Economic Zone on the west coast of the Taiwan strait in Fujian Province to speed up construction" pointed out:"strengthen cross-strait industrial cooperation, and actively undertaking Taiwanese manufacturing industry." Based on these and theories of regional economics and industrial economics, this article aims to study the relationship between the development of economic zone on the west coast of the Taiwan strait and the industrial transformation of Taiwan. Try to summarize a developing model for the economic zone in undertaking the industry transfer of Taiwan.By analyzing the background, status and trends in the evolution and developmentof Taiwan's industrial investment in the mainland, the article summarized the motivation of transformation and factors in affecting investment location choice.Select Fujian as the focus of study, summed up the the reasons why Taiwan choose it to be the location of industrial transfer and the strengths and weaknesses of economic zone on the west coast of the Taiwan strait in undertaking the transfer. By doing empirical analysis, get the conclusion:that in the long term, direct investment from Taiwan not only have positive effects on Fujian's GDP & Industrial Structure, but also will improve the import and export between Fujian and Taiwan.This conclusion echoes the article topics:the industry transfer from Taiwan's is the key to the development of Western Economic Zone on the west coast of the Taiwan Straits.Finally, considering the strategy direction of the zone making by the goverment and compared with Guangdong-Hong Kong model and the East Asian model, the paper brings forward of the plans to the pattens of development in how to undertake the transfer. More over, the paper puts forward some policy suggestions about the construction of investment environment. |