The Ecfa and its expected effect on cross-strait trade and investment
A Taiwanese perspective
Bibliographic Data
| ID | 12917853 |
|---|---|
| Authors | Shin-Horng Chen (0000-0001-7001-0747, Chung-Hua Institution for Economic Research, corresponding author), Meng‐Chun Liu (0000-0003-4813-2881, Chung-Hua Institution for Economic Research), Pei-Chang Wen (Chung-Hua Institution for Economic Research) |
| Year | 2011 |
| Volume | 4 |
| Issue | 2-3 |
| Pages | 105-124 |
| Publication date | 2011-06-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | China Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 1753-8963 • E-ISSN: 1753-8971 |
| Publisher | Routledge (PUBLISHER • GB) |
| DOI | 10.1080/17538963.2011.666060 |
| OpenAlex | W2024621146 |
| Language | EN |
| Citations received | 2 |
| References cited | 13 |
To come to terms with the realization of ASEAN+1, Taiwan had concluded with mainland China a special free trade agreement (FTA), the Economic Cooperation Framework Agreement (ECFA) in June 2010. This framework agreement provides an early harvest agreement of near-term tariff elimination, including detailed product schedules for goods and services from each side, with the final shape of fuller trade liberalization in goods and services taking years to negotiate and realize. The conclusion of the ECFA has been considered as a major breakthrough in cross-strait talks and economic relationships, even though it is by no means free from controversies inside Taiwan. The authors are therefore motivated by hot debates in Taiwan to reflect on the expected trade effect of the ECFA by taking into account the factor of cross-strait global production networks. In particular, we examine with a proposed model and statistical robustness, the trend of Taiwan-based firms' localization in mainland China, driven in part by constant movements in global production networks, which generates complicated and dynamic relationships between Taiwan's investment-induced trade and structural shift in Taiwan's exports to mainland China. Based on our empirical findings, we reflect on the conventional views on the trade effect of the free trade agreement. The results of our analyses tend to support a cautious view about the trade effect of the ECFA. Without denying the significance of the ECFA and deepening cross-strait economic relationships, we argue that the impact of the ECFA should be interpreted in a wider context than just the trade perspective, as the conventional wisdom and the existing evaluations suggested
China · Context (archaeology · Economics · Framework agreement · Free trade · Free trade agreement · Geography · International economics · International trade · Mainland China · Negotiation · Political science · Tariff · Economic Zones and Regional Development · Global trade and economics · International Business and FDI
| Unique citing works | 2 |
|---|---|
| Citations per year | 0,33 |
| Citation span | 2020 - 2023 (4) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |