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The impact of rising economic integration of Hong Kong and China

Lai, Yuen Man LU (2011) EKHR11 20111
Department of Economic History
Abstract
In the last decade, Hong Kong maintains a relatively stable and sustained economic growth compared to other developed countries despite the Asian Financial Crisis in 1997, the outburst of IT Bubble in 2001, the Severe Acute Respiratory Syndrome in 2003. This thesis suggests that integration with China is the reason for such growth. Many studies have shown that Hong Kong and China have been closely interacting economically since early 1980s, which involve the flow of goods, flow of capital and flow of people. However, most literatures mainly focus on the effect of trade integration despite the flow of people and capital between two regions has been ever increasing and encouraging. Decade ago, interaction of people was restricted as... (More)
In the last decade, Hong Kong maintains a relatively stable and sustained economic growth compared to other developed countries despite the Asian Financial Crisis in 1997, the outburst of IT Bubble in 2001, the Severe Acute Respiratory Syndrome in 2003. This thesis suggests that integration with China is the reason for such growth. Many studies have shown that Hong Kong and China have been closely interacting economically since early 1980s, which involve the flow of goods, flow of capital and flow of people. However, most literatures mainly focus on the effect of trade integration despite the flow of people and capital between two regions has been ever increasing and encouraging. Decade ago, interaction of people was restricted as Mainland Chinese were not allowed to come to Hong Kong by means of individual visiting. Capital flow was also highly restricted by Mainland ‘s regulation on financial markets. On the contrary, no such restrictions were placed on capital and people flows from Hong Kong to China. In this thesis, I suggest that year 2003 was a millstone for a new integration relation between Hong Kong and China. After year 2003, restrictions on Chinese capital and people flow to Hong Kong have been lifted, leading to significant impact to Hong Kong’s economy. This study will focus on the extent of integration as indicated by the flow of people and capital, as well as its affects on Hong Kong’s economy. A further assessment by using regression analysis has been performed. Finally, possible negative externalities brought by integration will also be accounted. (Less)
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author
Lai, Yuen Man LU
supervisor
organization
course
EKHR11 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
Economic integration, impact, Hong Kong, China, People flow, Capital Flow
language
English
id
2062047
date added to LUP
2011-09-19 13:10:54
date last changed
2011-09-19 13:10:54
@misc{2062047,
  abstract     = {In the last decade, Hong Kong maintains a relatively stable and sustained economic growth compared to other developed countries despite the Asian Financial Crisis in 1997, the outburst of IT Bubble in 2001, the Severe Acute Respiratory Syndrome in 2003. This thesis suggests that integration with China is the reason for such growth.  Many studies have shown that Hong Kong and China have been closely interacting economically since early 1980s, which involve the flow of goods, flow of capital and flow of people. However, most literatures mainly focus on the effect of trade integration despite the flow of people and capital between two regions has been ever increasing and encouraging. Decade ago, interaction of people was restricted as Mainland Chinese were not allowed to come to Hong Kong by means of individual visiting. Capital flow was also highly restricted by Mainland ‘s regulation on financial markets. On the contrary, no such restrictions were placed on capital and people flows from Hong Kong to China. In this thesis, I suggest that year 2003 was a millstone for a new integration relation between Hong Kong and China. After year 2003, restrictions on Chinese capital and people flow to Hong Kong have been lifted, leading to significant impact to Hong Kong’s economy. This study will focus on the extent of integration as indicated by the flow of people and capital, as well as its affects on Hong Kong’s economy. A further assessment by using regression analysis has been performed. Finally, possible negative externalities brought by integration will also be accounted.},
  author       = {Lai, Yuen Man},
  keyword      = {Economic integration,impact,Hong Kong,China,People flow,Capital Flow},
  language     = {eng},
  note         = {Student Paper},
  title        = {The impact of rising economic integration of Hong Kong and China},
  year         = {2011},
}