Direct Trade and Investment across Taiwan Strait: An Emperical Analysis of Taiwan and China's Accession into the WTO

The purpose of this paper is twofold. We begin by applying a multi-regional computable general equilibrium model to analyze the impacts of the global liberalization of trade in both services and commodities following the accession of Taiwan and China into the WTO. Thereafter, we investigate the differences resulting from changes in Taiwani¦s trade and investment policies towards mainland China. The distinctive feature of this study is that the effect of accession on foreign direct investment into mainland China is incorporated into the empirical model