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National Identity under Economic Integration

Author

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  • Chiang, Chun-Fang
  • Liu, Jin-Tan
  • Wen, Tsai-Wei

Abstract

This study empirically investigates how economic integration influences individuals’ national identity. Due to historical reasons and unique cross-strait politics, some people in Taiwan identify themselves as Chinese while others identify themselves as Taiwanese. Using individual survey data with the outward investment data at the industry level from 1992 to 2009, we find that the rising investment in China has strengthened Taiwanese identity and has reduced the probability of voting for the Pan-Blue parties. The effects are much stronger for unskilled workers than for skilled workers, suggesting that outward investment in China may not only have economic impact on the economy but may also deepen the political polarization in Taiwan.

Suggested Citation

  • Chiang, Chun-Fang & Liu, Jin-Tan & Wen, Tsai-Wei, 2018. "National Identity under Economic Integration," GLO Discussion Paper Series 210, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:210
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    More about this item

    Keywords

    identity; economic integration; voting behavior;

    JEL classification:

    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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