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An Assessment of the Closer Economic Partnership Arrangement Between China and Hong Kong

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  • Hung-Gay Fung
  • Jian Zhang

Abstract

In 2004, China and Hong Kong established a free trade agreement (FTA) called the Closer Economic Partnership Arrangement, intended to phase out all trade barriers to trade and investment between them. This research uses a computational general equilibrium model to evaluate the effects of the FTA on the Hong Kong and Chinese economies. The results indicate that Hong Kong improves its exports to China and gains in welfare at China's expense.

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Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal Chinese Economy.

Volume (Year): 40 (2007)
Issue (Month): 2 (April)
Pages: 36-50

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Handle: RePEc:mes:chinec:v:40:y:2007:i:2:p:36-50

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110901

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  8. Gary Clyde Hufbauer & Yee Wong, 2005. "Prospects for Regional Free Trade in Asia," Working Paper Series WP05-12, Peterson Institute for International Economics.
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