Analysis Of CEPA And The Economic Relations Between Mainland And Hongkong

Asia financial crisis and "nine eleven" attack led to slow grow in the world economy , making the situation in HongKong worse: growing unemployment rate and shrinking foreign trade business. The combination of interior and exterior factors has made HongKong economy in trouble. CEPA, which was signed in late June 2003, will enhance the economic development of HongKong and lead to free movement of factors, better reallocation of resources, and deeper economic integration between HongKong and mainland, which will improve the multifactor status of HongKong international economic and financial center.There is regional economical integration in the first chapter, the historic and internal reason for CEPA is in second chapter, which shows the economic growth in HongKong and mainland is the internal reason for the CEPA. The third chapter is about the content and characters of the agreement. The analysis of the economic integration between HongKong andGuangdong and the impact of CEPA on the economy of HongKong is in the forth and fifth chapter, which is the focus of the whole paper.The cooperation theory and model choice for HongKong and Guangdong economical integration is explained from the model "front store back factory" to "the integration of store and factory" and the model of complementary cooperation. The positive impact on the manufacturing and service industry since the implementation of CEPA and its theoretic feasibility is showed in chapter five. The strategic importance of CEPA and the problems involve in its implementation is in chapter six and seven. And the suggestion is given at the end of the paper, such as the transform of government function and measures for better cooperation of HongKong and Guangdong.