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Analysis Of CEPA's Influence To Guangdong-Hongkong's Economy Through Regional Economic Integration

Posted on:2004-11-25Degree:MasterType:Thesis
Country:ChinaCandidate:S YinFull Text:PDF
GTID:2156360095462998Subject:International finance
Abstract/Summary:PDF Full Text Request
After the signature of 《MAINLAND AND HONGKONG CLOSER ECONOMIC PARTNERSHIP ARRANGEMENT》( below briefly called as CEPA), the public of mainland and Hong Kong respond it warmly and raise a upsurge of study on CEPA and its influences. How to understand CEPA and its influences to economy correctly and completely? Regional economic integration is the essence of CEPA. Only if we start with the regional economic integration, we could understand CEPA and its influences to the economy of both parties correctly and completely.With the development of globalization of economy, the tide of regional economic integration also spread to the whole world, which makes deep impact to not only the whole-world economic structure but also regional economy. In the latest 20 years, especially after the establishment of WTO, regional economic organizations increase rapidly. Why? Firstly, there are less obstacles in regional economic integration than in global multiple trade system, which make it easier to reach agreement between members; Secondly, the effects of it are obvious. The main effects from regional economic integration can be concluded as Trade Expansion, Trade Creation, Trade Diversion, Scale Economy, Integration of System, Promoting Competition and Stimulating Investment. It consequently increases the regional welfare and enhances he whole regional ability of competition; Thirdly, the great achievements made by regional economic organization such as European Union bring good examples to the whole world. WTO allows free trade area as an exception from " most-favored nation treatment" which is a basic principle of multilateral trade system, because the end-result of regional economic integration is WTO, meanwhile the development of regional integration is also helpful to WTO.CEPA is the first regional economic arrangement similar with free trade area after China took part into WTO, and it expresses that China has begun to take part into regional economic cooperation with the positive and active attitude. The birth of CEPA not only temporizes to the big tide of regional economic integration, but also meets the objective need of the economy development in Mainland and Hong Kong. For Chinese mainland, its lower degree of involving regional economic cooperation leads thatthe effects of regional economic cooperation have not shown obviously, and the integration between Mainland, Hong Kong, Macao and Taiwan should be the first prefer strategy during the process of Mainland's attending to regional economic integration; On the other hand, Hong Kong's problems during economy upgrade such as its narrow market space, weak foundation of science and industry, and unreasonable structure of industry acquire bigger market space through deepen its integration with Mainland, which is benefit to develop its existing advantage and also accelerate economic development. So that we can conclude that CEPA is an inevitable choice after China took part into WTO; it is an objective requirement not only of regional economic integration but also of the economy development in both sides.The CEPA includes three main fields such as goods trade, service trade and convenience of investment. Among them, the zero rate of duty and the opening of Mainland's financial market are highly concerned. Due to the special relationship between Guangdong and Hong Kong in geographic location and folks, added to economic cooperation over 20 years after reform-open policy of Mainland, the regional integration between Guang dong and Hong Kong has gotten visible. The economic integration maintains Hong Kong's prosperity and stabilization and accelerates the economic development in Pearl River Delta. But today's cooperation between Guangdong and Hong Kong is still on primary level of regional integration. It can't meet the needs of economic development of both sides. The main problems include that the existing pattern of cooperation benefits less and less; some existing systems and policies of Mainland restrict the deepening of integration; Th...
Keywords/Search Tags:REGIONAL ECONOMIC INTEGRATION, CEPA, HONGKONG ECONOMY, ECONOMIC COOPERATION BETWEEN GUANGDONG AND HONGKONG, ZERO RATE OF DUTY, SERVICE TRADE, INTERNATION FINANCIAL CENTRE
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