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‘Like Fish Finding Water’: Economic Relations between Hong Kong and China

  • Robert F Ash

Abstract

Hong Kong’s transformation from a tiny, dependent colonial enclave into one of the most successful economies in the world is one of the most remarkable stories in post-war economic history. With real GDP rising, on average, by almost 10 per cent per annum in the 1960s and 1970s, Hong Kong’s growth record during this period was unmatched anywhere else in the world (Howe 1983). But by the early 1980s, high land rents and spiralling wages began to erode the international competitiveness that had been the basis of this success.1 By a happy coincidence, the emergence of such pressures coincided with the opening of the Chinese People’s Republic to the outside world. This initiative unexpectedly made available to Hong Kong entrepreneurs a huge, hitherto untapped reservoir of cheap labour and gave them access to inexpensive factory sites across the border in Guangdong.

Keywords

Foreign Direct Investment Foreign Investment Foreign Trade Pearl River Delta Bilateral Trade 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Robert Ash 2000

Authors and Affiliations

  • Robert F Ash

There are no affiliations available

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