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Impact of CEPA on the labor market of Hong Kong

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

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.

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File URL: http://www.sciencedirect.com/science/article/pii/S1043951X12000533
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Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 23 (2012)
Issue (Month): 4 ()
Pages: 975-981

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Handle: RePEc:eee:chieco:v:23:y:2012:i:4:p:975-981
Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

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  1. Damrongplasit, Kannika & Hsiao, Cheng & Zhao, Xueyan, 2010. "Decriminalization and Marijuana Smoking Prevalence: Evidence From Australia," Journal of Business & Economic Statistics, American Statistical Association, vol. 28(3), pages 344-356.
  2. Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working papers 98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
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