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Impact of CEPA on the labor market of Hong Kong

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  • Ching, Steve
  • Hsiao, Cheng
  • Wan, Shui Ki

Abstract

A panel data method is used to evaluate the impact of the Closer Economic Partnership Agreement (CEPA) signed between Mainland China and Hong Kong. Using the time series data of Hong Kong, Austria, Denmark, Finland, France, Germany, Italy, Japan, Korea, Netherlands, Norway, Singapore, Taiwan, U.K., and U.S. to construct what would have happened to Hong Kong's unemployment rate had there been no CEPA, we find that the CEPA effects gradually increases over time and eventually reached a constant level of reducing Hong Kong's unemployment rate by 9% a year.

Suggested Citation

  • Ching, Steve & Hsiao, Cheng & Wan, Shui Ki, 2012. "Impact of CEPA on the labor market of Hong Kong," China Economic Review, Elsevier, vol. 23(4), pages 975-981.
    • Handle: RePEc:eee:chieco:v:23:y:2012:i:4:p:975-981
    DOI: 10.1016/j.chieco.2012.04.017
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    References listed on IDEAS

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    Cited by:

    1. Zhou, Yonghong & Zheng, Xian & Yuan, Ziqing, 2022. "Trade liberalization and wages: Evidence from the closer economic partnership arrangement between mainland China and Hong Kong," Research in International Business and Finance, Elsevier, vol. 61(C).
    2. Yun Zhong & Xiaobo Su, 2019. "Spatial selectivity and intercity cooperation between Guangdong and Hong Kong," Urban Studies, Urban Studies Journal Limited, vol. 56(14), pages 3011-3029, November.
    3. Li, Hongjun & Li, Qi & Shi, Yutang, 2017. "Determining the number of factors when the number of factors can increase with sample size," Journal of Econometrics, Elsevier, vol. 197(1), pages 76-86.
    4. Fengyu Cheng & Jianping Liao & Kenichiro Soyano & Feiling Lu, 2023. "The Impact of Automobile Purchase Restriction on Urban Air Quality: Experimental Evidence from Beijing, China," Journal of Economic Statistics, Anser Press, vol. 1(1), pages 109-124, February.
    5. Gao, Yichen & Li, Hongjun & Li, Qi, 2022. "The misalignments in Chinese real effective exchange rate from 1994 to 2020: A counterfactual analysis," China Economic Review, Elsevier, vol. 75(C).
    6. Ke, Xiao & Chen, Haiqiang & Hong, Yongmiao & Hsiao, Cheng, 2017. "Do China's high-speed-rail projects promote local economy?—New evidence from a panel data approach," China Economic Review, Elsevier, vol. 44(C), pages 203-226.

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    More about this item

    Keywords

    Panel data; Counterfactual analysis; Hong Kong labor market; Unemployment;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling

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