Economic Impacts of Confucius Institutes and Taiwan Education Centers on Taiwan

Abstract:This article investigates the role of soft power in China–Taiwan relations, focusing on the role of Confucius Institutes and their Taiwan counterparts, the Taiwan Education Centers. Findings have shown that China's Confucius Institutes have reduced the number of students and tourists from the host country to Taiwan, but the Institutes may promote exports from Taiwan to the host country. This positive effect suggests a spillover due to the shared language and culture. Taiwan Education Centers increase the number of international students and volume of exports from Taiwan to the host country. Taiwan's imports from the host country may be reduced, signalling spillover effects as well.