The Investment Effects Of Econmic Integration Between Mainland China And Hong Kong

The world economy has entered the era of economic integration development, regional economic cooperation has also developed in full swing in the economic development of integration. It is mainly an initial area of the trade development for the purpose, but along with the economic integration degree of expanding and deepening; its investment effect on economic development is having a noticeable impact.Economic integration of the organizations between Mainland China and Hong Kong plays an important role in promoting economic development, especially the increase of investment. Our economic cooperation's becoming a new luminescent spot in the early 21st century economic development. On 29 June 2003, China's central government and the Hong Kong SAR government signed the mainland that takes the bilateral economic and trade exchanges increasingly close and two-way flow of investment has increased actively. The Hong Kong investment in Mainland China has become the important targets, Mainland China has become an important source of Hong Kong investment. With investment fields clause into practice, Mainland China and Hong Kong economic exchanges and trade will be closer, mutual investment would been further developed. Meanwhile supplementary agreement has increased year by year and fully shows that the Chinese mainland and Hong Kong's determination and position.Economic integration investment theories include the static effect analysis and the dynamic effect analysis. The paper uses the combination of practice and theory analysis, meanwhile, combination with Mainland China and Hong Kong's development present situation. The integration investment effect is analyzed about the Chinese mainland and Hong Kong economic. In addition, the empirical model is applied on the investment effect which proposed instructive and countermeasures about the Chinese Mainland and Hong Kong investment.The paper firstly introduces the economic integration of the theoretical basis of investment effect and puts forward the economic integration of static and dynamic effect. Then about the Chinese mainland and Hong Kong investment situation, the article analyzes the CEPA under the framework of economic integration of mutual investment potential that is tremendous. Next to the economic integration is investment effect of empirical analysis, first quantitative the flow and flux change expounds Chinese Mainland and Hong Kong investment in CEPA, then use econometric model of these effects for examination and concluded. Economic integration of the investment to about the Chinese mainland and Hong Kong's economic structure and economic growth have far-reaching influence, especially the dynamic effects of investment are larger than static effect which produced competition facilitation, scale economy and market expansion effect, promote the investment to be a more suitable location and industrial flow. It produces more important influence on overall economic growth. Finally economic integration proposes the corresponding countermeasures and suggestions which can promote our economic prosperity and get a win-win situation on the economic integration investment effect between Mainland China and Hong Kong.