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National Identity under Economic Integration

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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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    3. Štěpán Jurajda & Dejan Kovač, 2021. "Names and behavior in a war," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 1-33, January.
    4. Stuart Campbell & Ana Nuevo‐Chiquero & Gurleen Popli & Anita Ratcliffe, 2020. "Parental Ethnic Identity and Child Test Scores," Fiscal Studies, John Wiley & Sons, vol. 41(4), pages 851-881, December.
    5. Bai, Yu & Li, Yanjun, 2020. "Good bye Chiang Kai-shek? The long-lasting effects of education under the authoritarian regime in Taiwan," Economics of Education Review, Elsevier, vol. 78(C).
    6. Marie Claire Villeval, 2021. "Group Identity and Social Preferences by Yan Chen and Sherry X. Li," Post-Print halshs-03504258, HAL.

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    More about this item

    Keywords

    identity; economic integration; voting behavior;
    All these keywords.

    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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