IDEAS home Printed from https://ideas.repec.org/a/tpr/asiaec/v2y2003i2p78-97.html
   My bibliography  Save this article

Will Taiwan Be Marginalized by China?

Author

Listed:
  • Tain-Jy Chen

    (Department of Economics National Taiwan University 21 Hsu-Chow Road Taipei 100 Taiwan and Chung-Hua Institution for Economic Research 21 Hsu-Chow Road Taipei100 Taiwan)

Abstract

This paper shows that Taiwan has benefited immensely from China's accession to the World Trade Organization, in terms of the expansion of its exports to China, owing to Taiwan's institutional and structural advantages. Behind the rapid expansion of trade and investment, however, Taiwan runs a high risk of hollowing out its domestic industries, a risk that is manifested in a decline in exports, a loss of control over logistics functions that serve the export industry, and the relocation of research and development activities to China. Taiwan is facing an uphill battle of keeping its capital- and knowledge-intensive industries at home while attempting to take advantage of low-cost Chinese labor to retain its position in the world market. Copyright (c) 2003 Center for International Development and the Massachusetts Institute of Technology.

Suggested Citation

  • Tain-Jy Chen, 2003. "Will Taiwan Be Marginalized by China?," Asian Economic Papers, MIT Press, vol. 2(2), pages 78-97.
  • Handle: RePEc:tpr:asiaec:v:2:y:2003:i:2:p:78-97
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/153535103772624817
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuqing Xing, 2008. "FDI in China: Facts and Impacts on China and the World Economy," Working Papers EMS_2008_03, Research Institute, International University of Japan.
    2. Huang, Shu-Chin, 2013. "Capital outflow and R&D investment in the parent firm," Research Policy, Elsevier, vol. 42(1), pages 245-260.
    3. Yeh, Kuo-chun & Ho, Tai-kuang, 2010. "Will Japan, Taiwan or the US be isolated by China? A macroeconomic game approach," Japan and the World Economy, Elsevier, vol. 22(1), pages 59-68, January.
    4. Yeh Kuo-chun, 2009. "Will a Taiwan-China Monetary Union be Feasible? Lessons from Europe," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 14(3), pages 1-36, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:2:y:2003:i:2:p:78-97. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristin Waites). General contact details of provider: http://mitpress.mit.edu/journals/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.