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Can the establishment of the Guangdong-Hong Kong-Macao Greater Bay Area promote Capital Mobility and regional economic integration?

Author

Listed:
  • Yuxiao Gu
  • Shihong Zeng
  • Runtong Liu
  • Dan Xue

Abstract

This paper assesses the economic integration and regional capital mobility in the Guangdong-Hong Kong-Macao Greater Bay Area (hereinafter referred to as the GBA) of China during the period from 1978-2020 by employing panel cointegration and the fully modified OLS (FMOLS) method. To consider the factors influencing the capital market environment, we extended the traditional F-H (Feldstein & Horioka) model by constructing the unconditional F-H model and the conditional F-H model. The overall capital mobility and the overall economic integration of the GBA indeed improved, with Guangdong and Macao being the regions with the greatest benefits, except for Hong Kong where capital mobility has been hampered at this stage. JEL classification numbers: E60, E66, O10, O20.

Suggested Citation

  • Yuxiao Gu & Shihong Zeng & Runtong Liu & Dan Xue, 2026. "Can the establishment of the Guangdong-Hong Kong-Macao Greater Bay Area promote Capital Mobility and regional economic integration?," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 16(4), pages 1-1.
    • Handle: RePEc:spt:apfiba:v:16:y:2026:i:4:f:16_4_1
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    References listed on IDEAS

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    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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