Dynamic Analysis on Comparative Advantage of Industry Cooperation between Mainland and Taiwan

Comparative advantage has relativity and dynamic changes along with partner as well as the evolvement of the regional economic development itself. Industrial cooperation between mainland and Taiwan has experienced the initial, expansion, and transformation period, which from laborintensive industry to capital and technology intensive industry. The periodic process reflects the dynamic changes of Taiwan investment motive and the comparative advantage of both sides across the Taiwan Strait. In recent years, the crossstrait political detente and the signing of the ECFA lead to an improvement in industrial cooperation policy environment and industrial platform construction, as well as laid a good foundation for crossstrait industrial cooperation in the new period.