Hong Kong SAR Economic Integration with the Pearl River Delta
IMF Working Papers, December 1, 2008
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- Hong Kong SAR Economic Integration with the Pearl River Delta
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Bibliographic details
- Authors: Olaf Unteroberdoerster, Hongyi Chen
- Published: December 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451871319.001
Summary
- Hong Kong SAR's economic integration with the Mainland has primarily taken place in the Pearl River Delta (PRD).
- Taking stock of integration trends, this paper discusses key implications for ensuring economic benefits of further integration are sustained and associated costs minimized.
- Besides further investments in infrastructure, Hong Kong SAR's role as a producers services and finance hub will depend on frictionless movements of goods, services, people and know-how, requiring policy coordination to further promote trade and investment and developing a common human skills base with the PRD.
- Regional cooperation will also be needed to minimize the costs of rising levels of cross-border pollution.
Key themes and findings
- Integration locus: Pearl River Delta (PRD) is the primary area of Hong Kong SAR–Mainland economic integration.
- Drivers of sustained benefits:
- Further investments in infrastructure.
- Frictionless movements of goods, services, people and know-how.
- Policy coordination to promote trade and investment.
- Development of a common human skills base with the PRD.
- Costs to manage:
- Rising levels of cross-border pollution requiring regional cooperation.
Policy implications and recommendations
- Invest in infrastructure to support deeper integration.
- Promote frictionless cross-border movements of goods, services, people, and know-how through coordinated policies.
- Develop a common human skills base with the PRD to support Hong Kong SAR's role as a producers services and finance hub.
- Enhance regional cooperation to minimize the costs associated with cross-border pollution.
Subjects and keywords
- Subject: Environment, Exports, Foreign direct investment, Labor, Trade in services
- Keywords: division of labor, Hong Kong SAR, market capitalization, SAR company, WP