Research On The Location Choice Influencing Factors Of Taiwanese Service Industry Investment In Mainland China

After the institutionalization of economic cooperation between the Cross-Straits and Taiwanese investment in primary industry and secondary industry of Mainland, the service industry as the major field would be focused in the future. According to the perspective of Mainland industrial transformation, Taiwanese investment in the mainland service industry is also needed. Therefore, the issue how to attract Taiwanese investment in the mainland to promote the service industry has become importance. Due to the characteristics of the service industry at different stages are different, the problems that the Taiwanese investment stage, the distribution of the location, the characteristics of industrial structure, the concerned main factors, differences in the region and so on are worth researched.Through review and analysis of the previous literatures, this paper discusses the time, space and industry of Taiwanese investment in the mainland of China drawing on the experience of models and methods in the literatures. On the timeline, this research combines the change of policy, the depth and the field of Taiwanese investment in the mainland service market, which will be divided into three stages. In the early stage of development, Taiwanese investment in the mainland service industry has a small, fragmented characteristics, this period of direct investment by a great depression, Taiwanese investment in the mainland to the service industry through the third party indirect investment; In the changing gradually stage, due to the deepening of the opening of market and the change of policy oriented, Taiwanese investment in the mainland services on a number of projects reached historical peak, but total amount of acceleration are not synchronized, which reflects the investment in small project, the project and the amount set moderately high characteristics; In the stage of breakthrough development in which a change in the direction of investment services, scientific research and technology development in the deepening of Taiwanese investment in service industry to the direction of large-scale and high technology development field., the number of investment is reduced, the total amount of sharply increased which stage. On the spatial distribution, this study found that the Taiwanese investment in mainland China has the characteristics of the first centralized and decentralized location. This performance characteristic from Taiwanese to the mainland location advantages factors of comprehensive consideration and the relationship between the manufacturing industry and the close degree. In the industry, this study will be divided into three levels according to the function of the service industry and the specific difficulties faced by Taiwanese Investment in these three levels are classified and discussed.According to the three dimensions of Taiwanese service industry investment, the qualitative analysisis adopted. By establishing a fixed effects linear regression model, the 14 mainland provinces and municipalities were divided into two groups according to the concentration ratio of investment in service industry to study the effects of location factor. Experimental results show that the Taiwanese service industry investment in the second echelon of the larger first tier and small investment scale, market scale and investment are positively correlated, but the influence degree of the former is larger than or; manpower cost and investment is negative correlation, and the latter to the variable is more sensitive; the education level and the Taiwanese service industry investment in human capital attraction degree appear in two echelon regional differences, which in the first echelon, and service industry investment are positively related, in the second echelon was negatively correlated; two echelon in fixed investment also show differences. In the second echelon, of this variable is positively correlated with investment in service industry in Taiwan, and in the first echelon was negative correlation, namely fixed investment more to attract Taiwanese smaller; found in open degree and Taiwan and the mainland provinces and cities of the economic gap between the two variables in the study, they are in the first and second tier showed positive correlation. Through the quantitative analysis of these six variables, we can see that they show some differences in the attraction of Taiwanese investment in the mainland of China in different regions. This is mainly due to the different development stage of two types of regional service industry and the different relation among the service industry, primary industry and secondary industry.Therefore, this study aimed at the qualitative and quantitative analysis of the above conclusions, in order to improve the attractiveness of the mainland to Taiwanese investment in services and promote the rational distribution of the service industry in Mainland China. The corresponding countermeasures and suggestions are put forward from three aspects, Cross-Straits, Taiwan and Mainland China, Mainly includes:through the development of coordination protocol on both sides of service industry development, the establishment of service trade dispute resolution, implement the ECFA effect and for the two kinds of areas by optimizing the soft and hard environment of investment, enhance the attractiveness of the area etc..