One Country, Two Prices? A Study of the Deflationary Effect of Price Convergence on Hong Kong

Jiming Ha and Kelvin Fan

Asian Economic Journal, 2004, vol. 18, issue 4, 405-421

Abstract: Consumer prices in Hong Kong at the time of writing have declined by 15 percent from the peak recorded in 1998. We investigate the deflationary impact on Hong Kong of price convergence with the Mainland China, using 1990–2001 annual data on commodity prices in the former and in major cities of the latter. We find evidence of price convergence between the two economies over the past decade. Furthermore, price convergence is estimated to have accounted for one‐fifth of the deflation in Hong Kong. The results suggest that a significant portion of the deflation in Hong Kong is attributable to a process of structural adjustment due to growing economic integration with the Mainland.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://doi.org/10.1111/j.1467-8381.2004.00198.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:asiaec:v:18:y:2004:i:4:p:405-421

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1351-3958

Access Statistics for this article

Asian Economic Journal is currently edited by Sung Yun-Wing and Shigeyuki Abe

More articles in Asian Economic Journal from East Asian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().