Regional Factors And Spatial Effects Of Taiwanese Enterprises Investment In The Mainland Of China

From 1991 to 2015,Taiwanese investment in the mainland accounted for 61.35%in the proportion of foreign investment.Obviously,Taiwanese enterprises take the mainland as the most important location of investment.Taiwanese investment in the mainland still focused on Jiangsu,Shanghai,Zhejiang,Fujian,and Guangdong.This five provinces account for about 80%in the proportion of Taiwanese investment in the mainland.However the unbalanced phenomenon of the regional distribution still exists in mainland.Firstly,this paper has a comment on the representative FDI's regional selection in China and TDI's regional selection in the mainland.Secondly,using the descriptive analysis method,this paper analyzes the basic characteristics of the scale of investment and regional distribution about Taiwanese investment in the mainland.Finally,using the panel data during 1991 to 2015,under the condition of using rook matrix and economic distance matrix,this paper analyzes the result of the panel data model,the SAR and the SEM.The results show that:(1)Taiwanese regional selection in mainland has significant spatial correlation.The provinces take advantage not only of local location factors but also of TDI flows received by their neighbor.(2)TDI's spillover effect in the Eastern region is better than TDI's spillover effect in the middle region,but TDI's spillover effect is not significant in the western region.(3)TDI's spillover effect is obvious in different groups.(4)TDI's spillover effect between different economic development level regional groups is better than it within the group.The results of traditional factors show that:market scale and the level of opening up are the decisive factors influencing Taiwanese investment in the mainland;technology level has a limited contribution in attracting TDI inflows;human resource,labor cost,marketization level are not the important factors which affect Taiwanese investment in the mainland temporarily.This paper gives the proposals how to absorb Taiwanese investment in the future.Provinces in mainland should deepen opening to the outside world and effort to expand the market scale;meanwhile they should adjust regional policy according to the regional spatial spillover effect,and they should improve the infrastructure condition to provide a good investment environment.