1 / 22

Comparison of Mainland China and Taiwan

Comparison of Mainland China and Taiwan. Similar pattern, different timing?. Comparison. area mainland: 9,596,961 km 2 Taiwan: 35,980 km 2 population mainland: 1.35 billion Taiwan: 23 million. Political similarities. Chinese Communist Party (CCP) Marxism-Leninism and Mao Zedong Thought

alden
Télécharger la présentation

Comparison of Mainland China and Taiwan

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Comparison of Mainland China and Taiwan Similar pattern, different timing?

  2. Comparison • area • mainland: 9,596,961 km2 • Taiwan: 35,980 km2 • population • mainland: 1.35 billion • Taiwan: 23 million

  3. Political similarities • Chinese Communist Party (CCP) • Marxism-Leninism and Mao Zedong Thought • “Deng Xiaoping Theory” • “Three Represents” • Nationalist Party (KMT or GMD) • the “three principles of the people” • both CCP & KMT borrowed party-building principles from Soviet Union in 1920s

  4. Political similarities • Leninist party-state in mainland and Taiwan • political liberalization in Taiwan since 1980s • organizational principles of party-state • party as the guardian of the people • strict party hierarchy and discipline • no organized opposition to party leadership is allowed

  5. Comparison • P.P.P. GDP (2004-2012) • mainland • $7 trillion to $13 trillion • Taiwan: $0.6-0.9 trillion • trade volume (2004-2012) • mainland • $1.1 trillion to $3.8 trillion • Taiwan: $0.3-0.6 trillion

  6. Time-lagged development • Land reform • Taiwan (1950s) and mainland (1970s) • economic takeoff • Taiwan (1950s- ) and mainland (1980s- ) • tariff rebates • Taiwan (1950s- ) and mainland (1980s- ) • special economic zones • Taiwan (1960s- ) and mainland (1980s- )

  7. Time-lagged development • Promotion of small and medium size enterprises • Taiwan (1960s- ) and mainland (1980s- ) • depreciation of currency exchange rate • differences • decentralization in mainland (1980s- ) • foreign direct investment in mainland (1980s- ) • significantly contributed to export upgrading • technology-oriented selection criteria (1995- )

  8. Export dynamics • Continuous upgrading in the structure of exports • inclusion of more sophisticated commodities • development of new markets • growth in export volume • structural changes cause the growth in export volume

  9. Evidence from Taiwan

  10. Taiwan’s export upgrading • 1940s: agricultural exports • import manufactured consumer goods • 1950s: import substitution growth • export of processed agricultural commodities • import decreasing share of manufactured consumer goods • 1960s: export diversification growth • export of processed agricultural and industrial commodities

  11. Taiwan’s export upgrading • 1960s: export diversification growth • import food, manufactured consumer goods and producer goods • 1970s: import & export substitution growth • increasingly sophisticated commodities • after 1986 • exports of labor-intensive goods decrease • exports of hi-tech products increase

  12. Evidence from mainland

  13. Mainland’s export upgrading • Before 1978: • emphasis on self-reliance and inward-looking • trade based on self-sufficiency • 1978-1985 • increased exports of petroleum & raw materials • 1985-1995: “export substitution” growth • export of labor-intensive manufactured consumer commodities

  14. Mainland’s export upgrading • after 1995: further diversification • attempt to export more sophisticated commodities • exports of hi-tech product • total US$480 billion in Q1-3 of 2013 • 29% of total exports from mainland • 88% are exported by foreign-invested enterprises • less innovation-driven than in Taiwan

  15. Market share development • Flying-geese model • more advanced economies loses comparative advantages in labor-intensive industries • movement of industries through foreign direct investment • does not seem to hold true for manufactured commodities that require • high R&D expenditure • rapid product and process innovation

  16. Export of office machinery • Can’t be explained by flying-geese model • Taiwan became major developer, producer, and exporter • special case • 1 category • 8 years

More Related