The credibility of the PRC commitment to a market economy in Hong Kong : hypotheses and evidence
Document Type
Journal article
Source Publication
Economics and Politics
Publication Date
11-1-1997
Volume
9
Issue
3
First Page
251
Last Page
280
Abstract
How credible is China's commitment to a market economy in Hong Kong after 1997? Events signaling changes in commitment and the movement of time closer to 1997 should reduce the relative prices of immobile assets if commitment is not fully credible. Several factors may offset these effects: anticipatory adaption, growing dependence on China-related trade, and Chinese investment in Hong Kong. Analysis of data on incorporation and investment decisions, the relative sensitivity of the stock prices of firms with different asset mobility to political events, and the market for office space most strongly support hypotheses about credibility, adaption, and demand augmentation.
DOI
10.1111/1468-0343.00033
Print ISSN
09541985
Publisher Statement
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Full-text Version
Publisher’s Version
Language
English