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Economic Integration of Mainland China and the Hong Kong SAR

Author

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  • Kui-Wai Li
  • Tung Liu
  • Hoi Kuan Lam
  • Liang Wang

Abstract

Since 1997, when the political sovereignty of Hong Kong reverted to China, the integration of the two economies has steadily increased. This article examines the economic and institutional differences between mainland China and Hong Kong, and considers the spillover benefits for the provinces adjacent to Hong Kong. The economic and productivity growth of mainland China and Hong Kong are decomposed into four attributes: input growth, adjusted scale effect, technical progress, and efficiency growth. A stochastic frontier model is used to estimate the growth attributes, and a human capital variable is incorporated in the production function. The empirical study compares the growth, productivity, and efficiency performance of mainland China and Hong Kong.

Suggested Citation

  • Kui-Wai Li & Tung Liu & Hoi Kuan Lam & Liang Wang, 2011. "Economic Integration of Mainland China and the Hong Kong SAR," Chinese Economy, Taylor & Francis Journals, vol. 44(4), pages 92-114, July.
    • Handle: RePEc:mes:chinec:v:44:y:2011:i:4:p:92-114
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    Cited by:

    1. Chau-kiu Cheung & Raymond Chan & Wing-chung Ho, 2014. "Feeling Close to Fellow Citizens in Hong Kong, Korea, Taiwan, and Thailand," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(1), pages 25-48, October.

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