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Estimating the Growth Attributes of Mainland China and Hong Kong SAR

Author

Listed:
  • Kui-Wai Li

    (City University of Hong Kong, Hong Kong SAR)

  • Tung Liu

    (Department of Economics, Ball State University)

  • Hoi Kuan Lam

    (City University of Hong Kong, Hong Kong SAR)

  • Liang Wang

    (City University of Hong Kong, Hong Kong SAR)

Abstract

Since Hong Kong’s reversion of political sovereignty to Mainland China in 1997, the pace of economic integration between the two economies has increased. This paper first examines the economic benefits and institutional differences between Mainland China and Hong Kong. The empirical section of the paper used a stochastic frontier model with the incorporation of a human capital variable to decompose the economic and productivity growth of Mainland China and Hong Kong into the four attributes of input growth, adjusted scale effect, technical progress, and efficiency growth.

Suggested Citation

  • Kui-Wai Li & Tung Liu & Hoi Kuan Lam & Liang Wang, 2010. "Estimating the Growth Attributes of Mainland China and Hong Kong SAR," Working Papers 201004, Ball State University, Department of Economics, revised Feb 2010.
  • Handle: RePEc:bsu:wpaper:201004
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    File URL: http://econfac.bsu.edu/research/workingpapers/bsuecwp201004li.pdf
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    More about this item

    Keywords

    technical progress; technical efficiency; returns to scale; human capital; China economy; Hong Kong economy;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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