We propose that there is an evolutionary link between ultra-compact blue dwarf galaxies (UCBDs) with active star formation and nucleated dwarfs based on the results of numerical simulations of dwarf-dwarf merging. We consider the observational fact that low-mass dwarfs can be very gas-rich, and thereby investigate the dynamical and chemical evolution of very gas-rich, dissipative dwarf-dwarf mergers. We find that the remnants of dwarf-dwarf mergers can be dominated by new stellar populations formed from the triggered starbursts and consequently can have blue colors and higher metallicities (Z~[0.2-1]Z_sun). We also find that the remnants of these mergers can have rather high mass-densities (10^4 M_sun pc^-3) within the central 10 pc and small half-light radii (40-100 pc). The radial stellar structures of some merger remnants are similar to those of nucleated dwarfs. Star formation can continue in nuclear gas disks (R