Economic Interdependence and the Development of Cross-Strait Relations
Abstract
By measuring the extent to which improved economic relations between China and Taiwan
has led to improved political relations, this project uses the case of cross-Strait
relations to test the idea that economic interdependence encourages peace. Trade ties
and indicators of political relations measure the extent to which economic interdependence
can encourage peace and work toward conflict resolution in an inherently conflictual
relationship. Economic interdependence expands contacts between states, encourages
the building of cooperative institutions, and introduces new incentives for peace
over conflict. This paper argues that economic interdependence is not sufficient to
resolve political conflict, but it builds an environment conducive to improved political
relations and easing of tensions. These improvements are not high-level, political,
diplomatic ties but rather the building of lower level political and societal exchange.
Trade relations have grown between China and Taiwan from 2003 and 2011, and this economic
interdependence is correlated with expanded interaction in tourism, transportation,
political dialogue and cultural exchange. These effects allow for greater mutual understanding
and contact, which create a reciprocal effect by contributing to increased economic
interaction. While progress in cross-Strait relations is constrained by the internal
politics of both China and Taiwan at any moment, the United States plays an important
role in reinforcing the positive effects of economic interdependence.
Type
Honors thesisDepartment
Public Policy StudiesPermalink
https://hdl.handle.net/10161/4955Citation
Lu, Michelle (2011). Economic Interdependence and the Development of Cross-Strait Relations. Honors thesis, Duke University. Retrieved from https://hdl.handle.net/10161/4955.Collections
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