The Key Factors Influencing the Investment Inflow into Taiwan from Taiwan-based Firms in Mainland China: A Case Study of the Promotion Program by Chung-hua Coastal Industrial Park / 大陸台商回台投資意願關鍵因素之探索性研究─以彰濱工業區招商案為例

碩士 / 大葉大學 / 工業關係學系碩士班 / 91 / Due to the high production costs in Taiwan and the deterioration of domestic investment environment, a large number of Taiwanese businesspeople have rapidly expanded their investments in Mainland China, hoping to take the advantage of its cheap labor force and land, and to utilize its huge market. The ever-increasing fervor for investment in the mainland, also fueled by the vigorous promotion campaigns of the mainland authorities, has occurred to the detriment of our local manufacturing industries.
Over the past few years, our government has been taking positive steps to improve domestic investment environment in order to save Taiwan’s economy from worsening. The central government has coordinated closely with local governments to persuade those who have investments in Mainland China to maintain a Taiwan-based operation. Chang-hua Coastal Industrial Park (CHCIP) is a case in point. Using this huge and well-designed industrial park as one of the incentives, Chang-hua County has taken concrete actions to attract entrepreneurs to invest in the Park, hoping the County’s prosperity can be enhanced.
Using the CHCIP’s promotion program as a case study, this research explores the pivotal factors influencing the decisions of Taiwan-based firms in the mainland on their planning to invest in Taiwan. The author hopes that the results of the study will be useful for CHCIP’s promotion efforts. Being an exploratory and qualitative research, the study uses depth interview as an instrument for analysis. The data collected from the interviews are used to analyze the intentions of the Taiwan-based firms in the mainland in terms of investing at CHCIP under CHCIP’s current situation. This research also identifies the crucial factors affecting these firm’s CHCIP investment plans. The findings of this research are as follows.
First of all, when doing business in Mainland China, Taiwanese are most troubled by the huge expenditures on public relations, followed by excessive taxes and forced donations, unfair competitions from mainland’s local enterprises, and tough punishments for tax evasion.
As regards the decision-making of investing at CHCIP, the respondents are being asked, under current investment environment, whether and why they choose to invest in Chang-hua. Their answers are two kinds. Those who decide not to return to CHCIP show that they are most attracted by the special treatments Mainland China give to early investors and the cheap labor and land offered by the mainland authorities. Those who are willing to return to CHCIP make their decisions based primarily on the considerations for their own family members and on the confidence in Taiwan’s high quality employees and products. The next factor in importance is CHCIP’s being adjacent to Taichung Harbor, which they consider will benefit their business operation once the ban on direct cross-strait transportation is lifted.
Finally, in terms of the incentives offered by CHCIP, most businesspeople consider the following factors crucial: (1) lowering the initial capital expenditures in building factories; (2) designing CHCIP as a medium and small enterprises-based industrial park exclusively for traditional industries; (3) establishing a consulting office to help upgrade the operation of medium and small enterprises. Other important factors include designating Taichung Harbor as a free trade area which include CHCIP, and implementing the policy of direct cross-strait transportation.

Identiferoai:union.ndltd.org:TW/091DYU00630008
Date January 2003
CreatorsYaw-Chang Wu, 吳耀昌
ContributorsJiing-Shiuh Jang, Chyi-Shiun Lay, 張景旭, 賴其勛
Source SetsNational Digital Library of Theses and Dissertations in Taiwan
Languagezh-TW
Detected LanguageEnglish
Type學位論文 ; thesis
Format222

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