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Taiwan's Asia Pacific Economic Strategies Post-ECFA

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Author Info

  • Shiro Armstrong

    (EABER)

Abstract

Up to this point, Taiwan has had discriminatory trade and investment policies towards China, severely limiting economic engagement across the Straits. Not having free and open trade with China, one of the largest and most important parts of the East Asian economy, has resulted in Taiwan underperforming in attracting FDI, effectively cut Taiwan off from participating fully in the East Asian production networks and prevented the deepening of its specialisation in the regional and international economy. The Economic Cooperation Framework Agreement is a watershed in cross-Straits relations and gives Taiwan the opportunity to integrate more fully into the East Asian economy. There will be pressure now for Taiwan to pursue preferential trade deals with other countries. This would not seem a sensible way forward; rather Taiwan should pursue a multilateral trade strategy and focus on domestic reforms that will bring larger economic gains, economic diversification and avoid the political risks to the cross-Straits relationship associated with preferential deals.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series EABER Working Papers with number 22810.

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Date of creation: Jan 2010
Date of revision:
Handle: RePEc:eab:wpaper:22810

Contact details of provider:
Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
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Related research

Keywords: trade policy; investment policy; FDI; Taiwan; Economic Cooperation Framework Agreement; East Asia;

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References

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  1. Shiro Armstrong, 2007. "Measuring Trade and Trade Potential : A Survey," Trade Working Papers 21904, East Asian Bureau of Economic Research.
  2. Masahiro Kawai & Ganeshan Wignaraja, 2009. "The Asian “Noodle Bowlâ€:Is It Serious for Business?," Working Papers id:1936, eSocialSciences.
  3. Peter Drysdale & Xinpeng Xu, 2004. "Taiwan'S Role In The Economic Architecture Of East Asia And The Pacific," Trade Working Papers 22865, East Asian Bureau of Economic Research.
  4. Mitsuyo Ando & Fukinari Kimura, 2003. "The Formation of International Production and Distribution Networks in East Asia," NBER Working Papers 10167, National Bureau of Economic Research, Inc.
  5. Philippa Dee, 2005. "East Asian Economic Integration and its Impact on Future Growth," Asia Pacific Economic Papers, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University 350, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  6. Ross Garnaut & David Vines, 2007. "Regional free-trade areas: sorting out the tangled spaghetti," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 23(3), pages 508-527, Autumn.
  7. Shiro Armstrong & Peter Drysdale, 2009. "The Influence of Economics and Politics on the Structure of World Trade and Investment Flows," EABER Working Papers 22762, East Asian Bureau of Economic Research.
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Cited by:
  1. Prema-chandra Athukorala & Nobuaki Yamashita, 2009. "Global Production Sharing and Sino-US Trade Relations," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(3), pages 39-56.

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