Studying The Effect Of Taiwanese Direct Investment On Mainland China’s Export To Taiwan

With the development of cross-strait relations, especially economic cooperation frameworkagreement (ECFA), and investment protection agreements success of a series of cooperationagreements signed and the implementation of the direct investment of Taiwan businessmen on themainland, with the rapid development of cross-strait bilateral trade has entered the institutionalizedmechanism stage. Here Taiwanese direct investment is not only to make up for the lack of fundsfor construction mainland, but also brought advanced production technology and managementexperience to drive the growth of the mainland to Taiwan and export trade. New situation analysisto study the progress of Taiwan Direct Investment, especially with the intrinsic link between themainland to Taiwan export trade and its causes, development and regional economic integration ofthe to narrow continental trade deficit with Taiwan to promote cross-strait economic and traderelations deepen undoubtedly an important strategic and realistic guiding significance.A brief combing theory and practice of progress on the basis of this paper is mainlyconstructed from two aspects of the scale and structure of foreign direct investment in the hostcountry export effect theory analysis framework; thus descriptive statistics on Taiwan DirectInvestment and the mainland to Taiwan export analyzed the correlation between the two may exist;measurement methods using cointegration test and error correction model, empirical researchmainland exports to Taiwan Taiwan Direct Investment size and structure effect. On this basis, theestablishment of the Taiwan Direct Investment Technology Spillover effects model analysis ofTaiwan Direct Investment caused by effects of the substance of the exports to the mainland; learnfrom Manuel (2005) of the total investment model, analysis of Taiwan businessmen directinvestment in the mainland capital squeeze into effect. In the measurement method, regressionanalysis based, combined with time series ADF test, Johansen cointegration test a variety of testingmethods, such as more rigorous and accurate empirical conclusions.The empirical results show that: the Taiwan Direct Investment to expand the size of themainland’s exports to Taiwan, the Taiwan trade deficit narrowed mainland; same time a certainextent, to optimize the export structure of the mainland to Taiwan, Taiwan Direct Investment andjunior proportion of manufactured exports of cointegration relationship between not exist, andresource-intensive, low-technology intensive in technology-intensive, the increase in the proportion of high-tech intensive products exports is a positive correlation than the low, and the role of theincrease in the proportion of high-tech intensive products exports role in technology-intensiveproducts exports. In-depth analysis of Taiwan businessmen direct investment caused by mainlandexports to Taiwan structural optimization reasons, the results show: Taiwan Direct Investment toforward technology spillovers and capital Crowding promote the the mainland technology leveland the accumulation of domestic capital.