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Abstract
It costs a lot to look this pretty. This thesis explores how Taiwanese Foreign Direct Investment (FDI) serves as a tool of economic statecraft, influencing migration flows from states within the Association of South East Asian Nations (ASEAN) and Pacific Island states. Situated within the frameworks of Soft Power and Smart Power attraction, the study examines Taiwan’s use of economic engagement to establish strategic influence in regions with limited formal diplomatic recognition. Using datasets from 2013 to 2021, the analysis employs OLS regression to assess the relationship between Taiwanese FDI and migration to Taiwan, controlling for variables such as diplomatic status, net migration, GDP, population, natural disasters, economic recessions, and Chinese Belt and Road Initiative (BRI) investment. Findings show that Taiwanese FDI significantly increases migration, indicating the development of social and institutional linkages over time. According to Irene S. Wu's emigration rubric, migration is the strongest variable for Soft Power. The results contribute to understanding Taiwan's regional influence and the role of economic engagement in non-coercive diplomacy in ASEAN and Pacific Island states.