The Investment Location Of Hong Kong Investors In Pearl River Delta And The Research On Its Economy Effects

In the past 30 years, the rapid growth of FDI and foreign trade is the major driving force for Chinese economic growth. Besides, Guangdong Province and Pearl River Delta, as the engine function for Chinese economic development, are the agglomeration and the most vigorous foreign trade areas in China. In all the FDI and foreign trade, Hong Kong which is blessed with her unique geographical location, ethnic advantage and similar language culture has become the largest investor in Chinese mainland. What's more, about 50% HK capital has invested in Guangdong Province, especially the Pearl River Delta District. Therefore, it is quite important to survey the merchants of HK in mainland. Guangdong and Pearl River Delta. Hong Kong is the largest source of investors for Chinese mainland and Guangdong Province. However, being lack of the materials and data, the academic circle's research on investing of HK merchants is quite scarce while the investigation on America, Japan, Taiwan's FDI are voluminous. In consequence, based on lots of field-survey and data, the paper makes a thorough analysis on HK merchants' investing layout and economic effect in Pearl River Delta District.The main research contents of the paper are as follows:firstly, through FDI theory and Regional Investment Choice theory and based on the field-survey and data, the paper makes a systematic and in-depth research of HK merchants'layout and structure characteristics in Pearl River Delta and mainland. Secondly, the paper makes an empirical study of the factors influencing the investment in Pearl River Delta District and the factors' impact on HK investors. Thirdly, the paper analyses the promoting effect of HK-invested enterprises on economic growth and applies the econometric model to check the promoting effect of HK-invested enterprises. Finally, the paper brings forth some suggestions to comprehensively make use of the HK-invested enterprises.The results of research demonstrate as following:HK-invested enterprises are the major source of investors for mainland while the distribution of HK investors is unbalance and almost of 50% of HK investors are in Guangdong Province, especially in Pearl River Delta District, Dongguan, Shenzhen and Huizhou.Recently, the HK-invested enterprises show a tendency to north forward owing to the geographical advantage, preferred policies, the level of economic growth, infrastructure, investment concentration and convenient transportation. From the stance of investing enterprises, most of the processing and manufacturing industries have moved to Pearl River Delta District. The processing and manufacturing industries are labor-intensive industries and most of the products are sold to EU and America. In the recent years, the growth speed of manufacturing industries in mainland is eased up while the investments on high-technology and service sectors are rapid growth.From the point of the economic effects, HK capital is the most important source of capital for Pearl River Delta District and makes great contribution on the GDP growth, foreign trade development, government tax revenue, employment, technological progress of enterprise and so on.