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Cross-border Investment and Economic Integration: The Case of Guangdong Province and Hong Kong SAR

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  • Sharif, Naubahar

    (Hong Kong University of Science and Technology)

  • Huang, Can

    (UNU-MERIT)

Abstract

In this paper, we undertake a comparative study of the performance of local and foreign competitors’ manufacturing firms in a FDI-recipient region—Guangdong Province, China—and analyzes the policy implications of the comparison for the advanced, FDI-outflow region—Hong Kong Special Administrative Region (HKSAR). By highlighting changes in productivity that vary with changes in manufacturing firm ownership, we reveal that domestic firms have been catching up with their foreign counterparts, including Hong Kong-based firms, though foreign firms have successfully strengthened their dominating position in Guangdong’s manufacturing industry.

Suggested Citation

  • Sharif, Naubahar & Huang, Can, 2008. "Cross-border Investment and Economic Integration: The Case of Guangdong Province and Hong Kong SAR," MERIT Working Papers 2008-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2008035
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    References listed on IDEAS

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    Cited by:

    1. Bickenbach, Frank & Liu, Wan-Hsin, 2010. "The role of personal relationships for doing business in the GPRD, China: evidence from Hong Kong electronics SMEs," Kiel Working Papers 1589, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    Keywords

    Total Factor Productivity; Manufacturing Sectors; Asia; China; Guangdong; Hong Kong;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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