Journal of Population Economics

, Volume 32, Issue 2, pp 351–367 | Cite as

National identity under economic integration

  • Chun-Fang ChiangEmail author
  • Jin-Tan Liu
  • Tsai-Wei Wen
Original Paper


This study empirically investigates how economic integration influences individuals’ national identity. Due to historical reasons and unique cross-strait politics, some people in Taiwan identify themselves as Chinese while others identify themselves as Taiwanese. Using individual survey data with the outward investment data at the industry level from 1992 to 2009, we find that the rising investment in China has strengthened Taiwanese identity and has reduced the probability of voting for the Pan-Blue parties. The effects are much stronger for unskilled workers than for skilled workers, suggesting that outward investment in China may not only have economic impact on the economy but may also deepen the political polarization in Taiwan.


Identity Economic integration Voting behavior 

JEL classification

F50 Z10 D72 



Special thanks to the editor and three anonymous referees whose comments and suggestions helped improve and clarify this manuscript. We thank Shiu-Sheng Chen, Ming-Jen Lin, Ming-Ching Louh, and the seminar participants at NTU and Academia Sinica for their helpful comments. We also thank Yu-Hsuan Wang for excellent research assistance. All errors remain ours.

Funding information

We acknowledge financial support from Ministry of Science & Technology (MOST107-3017-F-002-004) and Ministry of Education (NTU-107L900203).


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of Economics and CRETANational Taiwan UniversityTaipeiTaiwan
  2. 2.Department of EconomicsNational Taiwan UniversityTaipeiTaiwan
  3. 3.Department of Public PolicyUCLALos AngelesUSA

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