ABSTRACT

This paper deals with the export performance of two of Asia’s most dynamic economies, Taiwan and Mainland China. The paper uses a theoretical approach derived from J.A.Schumpeter, one of the founding fathers of dynamics as a concept in economic theory and economic history. To compare the economic history of Taiwan and Mainland China may be considered strange for various reasons-for example the differences in size, the present state of development, and the shape of their economic systems. However, the two economies can well be compared by focusing on their success in global markets. These days they increasingly interact and contribute to the ‘Greater China’ growth pole in the world economy. This paper will analyse the export performance of both Taiwan and Mainland China during the past 50 years. Then it will investigate the interaction between Taiwan and Mainland China in the 1990s with regard to exports. Finally, the paper will consider the export potential of these economies and discuss their respective needs for adjustment.