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The dynamics of political and economic interactions between Mainland China and Taiwan


  • Zhaoyong Zhang


  • Xin Xu


  • Wei-Bin Zhang



The purpose of this article is to examine the trade and economic linkages across the Taiwan straits from the dynamic economic and political perspectives. In particular, we study the pattern and structure of the cross-straits trade and business linkages using game theory arguments. We assess the increasing economic interdependence between Taiwan and Mainland China, particularly the enduring political deadlock, by examining issues related to ”Taiwanification”, the dynamic instability, Taiwan's Mainland policy, and Taiwan in Beijing's Grand Strategy. Copyright Springer-Verlag Berlin/Heidelberg 2003

Suggested Citation

  • Zhaoyong Zhang & Xin Xu & Wei-Bin Zhang, 2003. "The dynamics of political and economic interactions between Mainland China and Taiwan," Economics of Governance, Springer, vol. 82(3), pages 373-388, September.
  • Handle: RePEc:spr:ecogov:v:82:y:2003:i:3:p:373-388 DOI: 10.1007/s10110-003-0164-0

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    References listed on IDEAS

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    6. Mintz, Jack & Tulkens, Henry, 1986. "Commodity tax competition between member states of a federation: equilibrium and efficiency," Journal of Public Economics, Elsevier, vol. 29(2), pages 133-172, March.
    7. Pissarides, Christopher A & McMaster, Ian, 1990. "Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 812-831, October.
    8. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    9. Morgan, William & Mutti, John & Rickman, Dan, 1996. "Tax Exporting, Regional Economic Growth, and Welfare," Journal of Urban Economics, Elsevier, vol. 39(2), pages 131-159, March.
    10. Ross Garnaut, 2002. "Equity and Australian Development: Lessons from the First Century," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 227-243.
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    Cited by:

    1. Hwee Kwan Chow, 2010. "Asian Tigers’ Choices : An Overview," Trade Working Papers 21879, East Asian Bureau of Economic Research.
    2. Kin‐Yip Ho & Zhaoyong Zhang, 2012. "Dynamic Linkages among Financial Markets in the Greater China Region: A Multivariate Asymmetric Approach," The World Economy, Wiley Blackwell, vol. 35(4), pages 500-523, April.
    3. Zhang, Zhaoyong & Sato, Kiyotaka & McAleer, Michael, 2008. "Is Greater China a currency union?," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 78(2), pages 319-327.
    4. Zhaoyong Zhang & Kiyotaka Sato, 2008. "Whither A Currency Union in Greater China?," Open Economies Review, Springer, vol. 19(3), pages 355-370, July.
    5. repec:spr:manint:v:49:y:2009:i:4:d:10.1007_s11575-009-0003-x is not listed on IDEAS


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