Open Access. Powered by Scholars. Published by Universities.®
![Digital Commons Network](http://assets.bepress.com/20200205/img/dcn/DCsunburst.png)
Public Affairs, Public Policy and Public Administration Commons™
Open Access. Powered by Scholars. Published by Universities.®
- Discipline
Articles 1 - 3 of 3
Full-Text Articles in Public Affairs, Public Policy and Public Administration
On The Logic Of The Economic Integration Of Hong Kong Into The Greater China Economy, Hoi Cheung Cheung
On The Logic Of The Economic Integration Of Hong Kong Into The Greater China Economy, Hoi Cheung Cheung
CAPS Working Paper Series
Hong Kong has encountered an economic downturn since the outbreak of the Asian Financial Crisis in 1997. It was a result of the lack of long-term preparation for adjustment to changes in the industrial structure. Without a foundation to upgrade its industrial structure from labour-intensive manufacturing to mid and high-tech industry, Hong Kong could only transit its industrial structure directly from the secondary sector to the tertiary sector – financial services, trading and logistics, and related services. Nonetheless, due to the keen competition in terms of cost advantages from the neighbouring economies, mainly those regional economies in the Pearl River …
Do China And Hong Kong Constitute An Optimum Currency Area?, Yue Ma, Shu Ki Tsang
Do China And Hong Kong Constitute An Optimum Currency Area?, Yue Ma, Shu Ki Tsang
CAPS Working Paper Series
After the political unification of Hong Kong with China, Hong Kong is supposed to function as a separate economic entity under the framework of "one country, two systems". However, the increasingly close ties between the two economices have raised the possibility of full economic integration, and even of monetary union as the Chinese currency progresses towards full convertibility. This paper employs the theory of optimum currency area (OCA) and adopts recently developed techniques to test whether China and Hong Kong constitute an OCA. The empirical findings based on disaggregated historical data are overwhelmingly negative. Other considerations also point to a …
Growth-Inflation Tradeoff In China, Hiroyuki Imai
Growth-Inflation Tradeoff In China, Hiroyuki Imai
CAPS Working Paper Series
The high growth and wide fluctuations of fixed investment are the main driving forces of the rate of inflation in China in the reform period. Investment expansion generates strong demand pressures in the consumption goods market. Its inflationary impact is magnified further as it brings about higher wage costs during a boom. An implied short-run tradeoff is derived from dynamic simulation of a small macroeconomics model. In a given year, each additional percentage point of economic growth or investment growth leads to, respectively, a 2.7 or a 0.9 percent increase in the rate of inflation that year.