An Analysis Of The Changing Trend Of Factors Affecting Direct Investment By Taiwanese Businessmen In The Mainland Of The Motherland

Taiwan investment in China mainland have a very important role in strengthening cross-strait cooperation,closing cross-strait ties.In recent years,the labor force,land and other factors' prices continue to rise,the ecological environment constraints increased in China mainland.Over the past few years,new investment trend struck in China mainland.From the point of scale,the investment showed a steady upward trend before 2010,while now investment was showing a decline.From the point of location,Investment in the eastern region is spreading to the western region.In this case,it is of great significance to explore how the future of the motherland continent continues to maintain its attractiveness to Taiwan investment.Based on the previous research,this paper chooses the indicators of cost,market,agglomeration,policy and investment environment,and uses 25 panel data from 25 provinces and cities in China mainland from 2000 to 2015 to conduct an empirical analysis.The results of the overall regression show that the level of labor wages,market size,regional opening level,industrialization level and infrastructure construction level have promoted the investment of Taiwan investment in China mainland;the cost of land use,the total investment of Taiwan investment in China mainland and the investment of Taiwan investment in China mainland are negatively correlated.The results of the regression analysis showed that the market size in the eastern region significantly promoted the investment of Taiwan investment in this region,but not significant in the central and western regions,indicating that the market potential of the central and western regions is to be excavated;local infrastructure construction in the central and western regions significantly promoted Taiwan investment,while it's not significant in the eastern region;the degree of openness in the eastern region is significantly positive with Taiwan investment,while in the central and western regions the result is significantly negative,indicating that the resource exports reduced the central and western regions' ability to attract Taiwan investment.The cumulative amount of Taiwan investment is significantly negative with Taiwan investment in the eastern region,and the impact is not significant in the central and western regions.Industrialization in the eastern region is not significant,but in the central and western regions it is significantly positive.Thus improving the level of industrialization in central and western areas contribute to attracting Taiwan investment;although the overall wage level of labor and Taiwan investment is positively related,the effect of labor wages on Taiwan investment is different among provinces,some provinces and cities in the central and western regions have outperformed the inflection point,which inhibited the Taiwan investment in this region.Other provinces who have come closed to the inflection point will be suppressed very soon.Labor costs and market size plays a joint role in the attractiveness Taiwan.The expansion of market size will reduce the relative importance of cheap labor costs in attracting Taiwan investment,and the ever-expanding market size will promote Taiwan investment to inflow to China mainland.After the disappearance of the low labor cost advantage,the China mainland market is full of great potential to attract Taiwan investment in the future.Finally,on the basis of the previous analysis,we will provide advice to promote Taiwan investment in China mainland.