This paper attempts to shed some light on these intriguing questions by examining the various aspects of the economic interaction between the two sides of the Shenzhen river. We shall focus essentially on import and export relationships, with a particular reference to the unique phenomenon of trade-bound “outward processing” investment undertaken by Hong Kong manufacturers in South China. The analysis will be preceded by a description, in broad contour, of the changing overall economic structure in Hong Kong in terms of GDP and employment structure in the past decade. This helps to provide a frame of reference for assessing the implications of the trade and financial flows across the border. We shall, however, begin the discussion by highlighting the changing basic economic and institutional parameters in China itself in order to place the economic involvement of Hong Kong in a proper broader historical context. The latter part of the paper evaluates the relative degree of Hong Kong’s economic dependence on the Chinese Mainland and point to possible course of development in the future.
Ho, Y. P., & Kueh, Y. Y. (1993). Whither Hong Kong in an open-door, reforming Chinese economy? (CPPS Working Paper Series No.5). Retrieved from Lingnan University website: http://commons.ln.edu.hk/cppswp/5/