The Trade And Port Logistics Connection Between Fujian And Taiwan

There is a very intimate relationship between the Fujian and Taiwan province. Not only are they closed to each other geographically, but they share unbreakable bond of blood, culture, and trade. Fujian has attracted the most Taiwan investment in the mainland. In "the Eleventh Five-year Industrial Connection special planning between Fujian and Taiwan", which was issued in 2006 and the "17th Party Conference report" in 2007, the government has made a special point of speeding up the construction of advanced manufacturing base of the west side of the Straits and exploring new cooperative opportunities between Fujian and Taiwan. All these provide a new political space for the economic and trade development of these two neighboring provinces.The author elaborates on the cooperation between Fujian and Taiwan through port logistics' perspective. This paper is grounded on Industrial Economics and Trade Theory, with static and dynamic analysis, qualitative and quantitative analysis adopted in combination. First, the author makes a comparative study on Taiwan and Fujian' economy, trade and port logistics and find out the differences and similarities as breakthrough point of cooperation. According to quantitative analysis for correlation of the economic and trade development and port logistics between the two provinces, the author established the corresponding linear regression and elasticity coefficient model. The author finds out the mutual benefit of Taiwan and Fujian with Pareto Optimality of Game theory and pure economy interests principle to analyses the benefit all share in the development of port logistics. Finally the author predicts the trade volume of these two provinces according to cross-strait port logistics development and mathematical model and puts forward the measures of connection in 7 industries, constructing the connection platform for trade, so as to promote the cooperation of the port logistics.