Taiwan-Mainland Economic Nexus

Taiwan-Mainland Economic Nexus: Socio-Political Origins, State-Society Impacts, and Future Prospects Most researchers working on Taiwan's mainland investment are economists and tend to focus on the economic dimension of the Taiwan-mainland nexus. Consequently, they are unable to explain both the timing (why it started in 1987), the locale (why in Guangdong and Fujian), the ownership (why the preference for sole ownership), the investors (why small and medium enterprises took the lead), and the speed (why at such a rapid rate) of Taiwan's mainland investment. In this respect, the aim of this paper is to bring the socio-political dimension back in so as to gain a broader picture on its origins, impacts, and prospects. First, this paper will investigate to what extent have the origins of Taiwan's mainland investment been shaped by other than economic factors. Second, this paper will study how the Taiwan-mainland economic nexus has exerted such a profound impact on Taiwan's state-society relationship. Finally, this paper will briefly examine the future prospects for this nexus, extending it to the conception of the "Great Chinese Economic Circle."