{"title":"Cross-Strait Relations Between Taiwan and Mainland China: The Economic Imbalance and its Implications","authors":"Kerry Liu","doi":"10.1177/00094455231183239","DOIUrl":null,"url":null,"abstract":"The cross-strait relations between Taiwan and China are critical in the Asia Pacific and the world. This study focuses on economic relations and their implications. The main conclusions include: First, the economic gap in output is increasingly larger, thus favouring China. Based on a time series robust least squares model, this study finds that this economic strength will significantly reduce the number of Taiwan’s foreign allies. At the same time, this economic strength also brings military imbalance. Second, by employing the Granger causality tests to examine the causality relations between the stock markets of Taiwan and China, which reflect the economic integrations in areas such as the trade of goods and services and capital flow, this study finds that China is in a dominant position. At the same time, Taiwan is in a dominated position. However, except for tourism, the effects of China’s dominant position as leverage seem limited.","PeriodicalId":44314,"journal":{"name":"中国报道","volume":"59 1","pages":"133 - 153"},"PeriodicalIF":0.5000,"publicationDate":"2023-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"中国报道","FirstCategoryId":"1092","ListUrlMain":"https://doi.org/10.1177/00094455231183239","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
The cross-strait relations between Taiwan and China are critical in the Asia Pacific and the world. This study focuses on economic relations and their implications. The main conclusions include: First, the economic gap in output is increasingly larger, thus favouring China. Based on a time series robust least squares model, this study finds that this economic strength will significantly reduce the number of Taiwan’s foreign allies. At the same time, this economic strength also brings military imbalance. Second, by employing the Granger causality tests to examine the causality relations between the stock markets of Taiwan and China, which reflect the economic integrations in areas such as the trade of goods and services and capital flow, this study finds that China is in a dominant position. At the same time, Taiwan is in a dominated position. However, except for tourism, the effects of China’s dominant position as leverage seem limited.
期刊介绍:
China Report promotes the free expression and discussion of different ideas, approaches and viewpoints which assist a better understanding of China and its East Asian neighbours. A quarterly journal of the Institute of Chinese Studies, it attempts to provide a fresh approach which goes beyond the strictly utilitarian area studies without becoming antiquarian. Launched in 1964, China Report has, over the years, widened its interests and aims and transformed itself into a scholarly journal that seeks a better understanding of China and its East Asian neighbours - particularly their cultures, their development and their relations with China. It is an indispensable source of information on China, its society and culture.