Hong Kong’s economic integration with Chinese mainland: an index and cointegration analysis of socio-economic indicators

Geng Cui and Yuho Chung

Asia Pacific Business Review, 2022, vol. 28, issue 5, 740-764

Abstract: We use archival data from various sources between 1990 and 2019 to construct a comprehensive index of economic integration between Hong Kong and Chinese mainland. The results indicate that the two economies have become highly integrated and interdependent over time. Cointegration tests of the long-run relationships between the index and economic and social indicators suggest that such integration is largely in tandem with the economic development of Hong Kong (e.g. GDP growth, unemployment, and property prices). However, the index is also associated with increasing disparity, a lack of confidence in the government and the future of Hong Kong, and the identity of Hongkongers. The findings reveal the positive effect of economic integration as well as deep-rooted problems in the territory. These problems present significant challenges for economic development and governance under the ‘one country, two systems’ and call for policy discourse on effective solutions.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13602381.2022.2116882 (text/html)
Access to full text is restricted to subscribers.

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:taf:apbizr:v:28:y:2022:i:5:p:740-764

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FAPB20

DOI: 10.1080/13602381.2022.2116882

Access Statistics for this article

Asia Pacific Business Review is currently edited by Professor Chris Rowley and Malcolm Warner

More articles in Asia Pacific Business Review from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().