IDEAS home Printed from https://ideas.repec.org/a/taf/jocebs/v15y2017i2p141-163.html
   My bibliography  Save this article

The Closer Economic Partnership Arrangement (CEPA) and its impacts on the export efficiency of Hong Kong and Macao

Author

Listed:
  • Henry Chun Kwok Lei

Abstract

The Closer Economic Partnership Arrangement (CEPA) is a bilateral preferential agreement signed among China, Hong Kong, and Macao which opens up the China market by providing zero tariff after accession. This paper sheds light to the impacts of the CEPA on merchandise trade with an in-depth analysis on export efficiency. Despite that merchandise trade has already been fully liberalized, the estimation results indicate that the efficiency of exports to China has been on the decline since 2000. This implies that the actual value of exports to China has departed from its full potential, and confirms our suspicions on the incapability of the CEPA to boost the exports of Hong Kong and Macao to China. There is also no evidence to support that the CEPA has successfully attracted foreign investment to Hong Kong and Macao for tariff free exports to China.

Suggested Citation

  • Henry Chun Kwok Lei, 2017. "The Closer Economic Partnership Arrangement (CEPA) and its impacts on the export efficiency of Hong Kong and Macao," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 15(2), pages 141-163, April.
    • Handle: RePEc:taf:jocebs:v:15:y:2017:i:2:p:141-163
    DOI: 10.1080/14765284.2017.1281082
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14765284.2017.1281082
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14765284.2017.1281082?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Deluna, Roperto Jr, 2013. "Trade Performance and Potential of the Philippines: An Application of Stochastic Frontier Gravity Model," MPRA Paper 51677, University Library of Munich, Germany.
    2. Sapir, André, 1997. "Domino Effects in Western European Trade, 1960-92," CEPR Discussion Papers 1576, C.E.P.R. Discussion Papers.
    3. Shujiro Urata & Misa Okabe, 2009. "The Impacts Of Free Trade Agreements On Trade Flows: An Application Of The Gravity Model Approach," World Scientific Book Chapters, in: Christopher Findlay & Shujiro Urata (ed.), Free Trade Agreements In The Asia Pacific, chapter 6, pages 195-239, World Scientific Publishing Co. Pte. Ltd..
    4. Shiro Armstrong, 2007. "Measuring Trade and Trade Potential: A Survey," Asia Pacific Economic Papers 368, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    5. Deluna, Roperto Jr & Cruz, Edgardo, 2014. "Philippine Export Efficiency and Potential: An Application of Stochastic Frontier Gravity Model," MPRA Paper 53580, University Library of Munich, Germany.
    6. Shiro Armstrong & Peter Drysdale, 2009. "The Influence of Economics and Politics on the Structure of World Trade and Investment Flows," EABER Working Papers 22762, East Asian Bureau of Economic Research.
    7. Shiro Armstrong & Peter Drysdale & Kaliappa Kalirajan, 2008. "Asian Trade Structures and Trade Potential : An Initial Analysis of South and East Asian Trade," EABER Working Papers 21753, East Asian Bureau of Economic Research.
    8. Joseph Francois & Miriam Manchin, 2009. "Economic Impact of a Potential Free Trade Agreement (FTA) Between the European Union and the Commonwealth of Independent States," IIDE Discussion Papers 20090805, Institue for International and Development Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nguyen Xuan Trung & Nguyen Duc Hung & Nguyen Thi Hien, 2018. "Exploiting the Trade Potential from Integration: Analysing the Impact of Free Trade Agreements between ASEAN and India and China," China Report, , vol. 54(4), pages 442-466, November.
    2. Shiro Armstrong, 2013. "Taiwan's Asia Pacific economic strategies after the Economic Cooperation Framework Agreement," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(1), pages 98-114.
    3. Swapan K. Bhattacharya & Gouranga G. Das, 2014. "Can South–South Trade Agreements Reduce Development Deficits?," Journal of South Asian Development, , vol. 9(3), pages 253-285, December.
    4. Shiro Patrick Armstrong, 2015. "East and South Asia: Managing Difficult Bilateral Relations and Regional Integration Globally," Asian Economic Journal, East Asian Economic Association, vol. 29(4), pages 303-324, December.
    5. Shiro Armstrong, 2010. "Taiwan's Asia Pacific Economic Strategies Post-ECFA," EABER Working Papers 22810, East Asian Bureau of Economic Research.
    6. Memduh Alper Demir & Mustafa Bilik & Utku Utkulu, 2017. "The Impact of Competitiveness on Trade Efficiency: The Asian Experience by Using the Stochastic Frontier Gravity Model," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(4), pages 1-15.
    7. Peter Egger & Michael Pfaffermayr, 2004. "Foreign Direct Investment and European Integration in the 1990s," The World Economy, Wiley Blackwell, vol. 27(1), pages 99-110, January.
    8. Fourie, Johan & Santana-Gallego, María, 2011. "The impact of mega-sport events on tourist arrivals," Tourism Management, Elsevier, vol. 32(6), pages 1364-1370.
    9. Nauro Campos & Fabrizio Coricelli & Luigi Moretti,, 2020. "Choosing Institutional over Economic Integration: Are There Growth Effects?," Working Papers hal-03028143, HAL.
    10. Guangji Tong & Rui Hong & Lei Shi, 2023. "The Growth Effect and Its Influencing Factors: Empirical Evidence Regarding China’s Fruit and Vegetable Exports to RCEP Countries," Agriculture, MDPI, vol. 13(10), pages 1-19, September.
    11. Richard E. Baldwin, 2011. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocks on the Path to Global Free Trade," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 2, Edward Elgar Publishing.
    12. Nauro Campos & Fabrizio Coricelli & Luigi Moretti, 2015. "Norwegian Rhapsody? The Political Economy Benefits of Regional Integration," Working Papers halshs-01267252, HAL.
    13. Pengfei Chu & Guanxia Xie & Zhenyun Liu, 2020. "Research on the Export Potential of China’s Equipment Manufacturing Products to Countries Along the Belt and Road," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(10), pages 105-105, October.
    14. Xu Wang & Ryan P. Badman, 2016. "A Multifaceted Panel Data Gravity Model Analysis of Peru's Foreign Trade," Papers 1612.01155, arXiv.org.
    15. Nobuaki Yamashita, 2010. "International Fragmentation of Production," Books, Edward Elgar Publishing, number 13615.
    16. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
    17. Jung Hur & Hyun-Hoon Lee, 2017. "Apec Has Indeed Created Intra-Regional Trade: A Systematic Empirical Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(05), pages 1077-1095, December.
    18. Hai Nguyen & Thang Doan, 2017. "The ASEAN Free Trade Agreement and Vietnam’s Trade Efficiency," Asian Social Science, Canadian Center of Science and Education, vol. 13(4), pages 192-192, April.
    19. Sapkota, Jeet Bahadur & Shuto, Motoko, 2016. "Is Pan-Asian Economic Integration Moving Forward? Evidence from Regional Trade Statistics," MPRA Paper 106075, University Library of Munich, Germany.
    20. Nisha Taneja & Shravani Prakash & Samridhi Bimal & Sakshi Garg & Riya Roy, 2020. "Indo-Nepal Trade and Investment: An Analysis," India Quarterly: A Journal of International Affairs, , vol. 76(2), pages 243-275, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jocebs:v:15:y:2017:i:2:p:141-163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCEA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.