The China-Hong Kong connection: the key to China's open-door policy
About: This article is published in International Affairs.The article was published on 1992-10-01. It has received 48 citations till now. The article focuses on the topics: Open door policy (business).
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TL;DR: This paper measured the impact of China's decision to open its economy in 1980 on outsourcing from Hong Kong and the relative demand for less-skilled workers and found that the demand for skilled workers in Hong Kong increased at the same time outsourcing to China began to increase.
Abstract: We measure the impact of China's decision to open its economy in 1980 on outsourcing from Hong Kong and the relative demand for less-skilled workers We show that the relative demand for skilled workers in Hong Kong increased at the same time outsourcing to China began to increase The reallocation of workers from manufacturing to "outsourcing services" can account for 15 percent, and increased utilization of skilled workers within manufacturing industries for 30 percent, of the aggregate relative demand shift In addition, the rate of skill upgrading has been greater in manufacturing industries that have seen a greater degree of outsourcing to China
203 citations
TL;DR: In this paper, the authors used data on the output of 23 industrial sectors in seven coastal regions (provinces and counties) over the period 1985 to 1989 to study the correlates of growth.
Abstract: In the 1980s China experienced 'an explosion of pent-up entrepreneurship' facilitated by wide-ranging, although often unorthodox, economic reforms. This article uses data on the output of 23 industrial sectors in seven coastal regions (provinces and counties) over the period 1985 to 1989 to study the correlates of growth. Although industry-specific features the degree of specialization and competition had some influence on growth, much of the action came from region-specific influences and regional spillovers? Regional influences included the open-door policies and special economic zones that successfully attracted investments from overseas Chinese to particular locations. Existing regional strengths, especially high-quality human capital and infrastructure, also contributed to growth. The results illuminate the interplay between conditions conducive for growth for example; the contribution of foreign expertise is greatly enhanced by available human capital. China made judicious use of the advantages of backwardness by targeting areas that were less developed and less encumbered by the legacy of existing institutions, although it was fortunate in this regard that the backward regions were in close proximity to Hong Kong and Taiwan (China). Important also was the transmission of growth impulses across the provinces and counties, possibly through perform cadre and administrative networks.
167 citations
TL;DR: Wong et al. as mentioned in this paper have shown that SEZs have generally proved to be a successful means of fostering economic growth and prosperity, but there do exist variations in the relative success of SEZ both within China, and between China and other countries.
Abstract: Special economic zones (SEZs) have been adopted by many countries, particularly in the Asia region, as a popular means by which to foster and stimulate economic development (Wong and Chu 1985; Oborne 1986). Encouraged by the success of SEZs in other Asian regions and countries in the 1960s and 1970s, China set up four SEZs in 1979, including one in Shenzhen. As a result of its extraordinary growth and success, Shenzhen SEZ has itself become a positive example and impetus for the rest of the world. Although a large number of SEZs are already in operation around the globe (approximately 400), it is likely that a growing number of SEZs will continue to appear, both in Asia and worldwide. This is because SEZs have generally proved to be a successful means of fostering economic growth and prosperity. However, despite their general effectiveness, there do exist variations in the relative success of SEZs both within China, and between China and other countries. For example, within China, Guangdong's other two SE...
50 citations
Cites background from "The China-Hong Kong connection: the..."
...Since the end of the 1960s, an extensive body of literature on SEZs has evolved (EPZ Authority 1981; UNCTAD 1983), including works focused on Shenzhen SEZ (Vogel 1989; Thoburn 1990; Sung 1991; Zhang 1994; Wu 1996; Chan 1999; Ching 1999; Li and Huang 1999)....
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TL;DR: In China, education agents are often hired to assist students in finding an internati... as mentioned in this paper, which is a third-party entity who is paid to assist a student to find, apply to, and/or prepare for college.
Abstract: An education agent is a third-party entity who is paid to assist a student to find, apply to, and/or prepare for college. In China, agents are often hired to assist students in finding an internati...
46 citations
Cites background from "The China-Hong Kong connection: the..."
...Open-door policy, evolved since the late 1970s, is a significant part of China’s strategy of economic development via adapting advanced knowledge and technology from foreign countries (Sung, 1991)....
[...]
TL;DR: The authors examines the many estimates of Chinese investment in Hong Kong, tracing their sources and bases of estimation, and concludes that most of these estimates are crude guesses with very little empirical support.
Abstract: Over the last decade, China has been the leading investor among developing countries and Hong Kong is the foremost destination of Chinese investment. However, China’s outward investment has been grossly understated in official statistics due to avoidance of China’s foreign exchange controls. This paper tries to appraise those investment flows both quantitatively and qualitatively.
It examines the many estimates of Chinese investment in Hong Kong, tracing their sources and bases of estimation. Most of these estimates are found to be crude guesses with very little empirical support. However, from the data on asset value and market capitalisation of listed Chinese companies in Hong Kong, and also from interviews with knowledgeable sources, it is possible to gauge the rough size of Chinese investment in Hong Kong. The paper also examines China’s economic presence in major sectors of the Hong Kong economy. It discusses the composition of Chinese investment by industry and by ownership ...
41 citations
References
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TL;DR: This paper measured the impact of China's decision to open its economy in 1980 on outsourcing from Hong Kong and the relative demand for less-skilled workers and found that the demand for skilled workers in Hong Kong increased at the same time outsourcing to China began to increase.
Abstract: We measure the impact of China's decision to open its economy in 1980 on outsourcing from Hong Kong and the relative demand for less-skilled workers We show that the relative demand for skilled workers in Hong Kong increased at the same time outsourcing to China began to increase The reallocation of workers from manufacturing to "outsourcing services" can account for 15 percent, and increased utilization of skilled workers within manufacturing industries for 30 percent, of the aggregate relative demand shift In addition, the rate of skill upgrading has been greater in manufacturing industries that have seen a greater degree of outsourcing to China
203 citations
TL;DR: In this paper, the authors used data on the output of 23 industrial sectors in seven coastal regions (provinces and counties) over the period 1985 to 1989 to study the correlates of growth.
Abstract: In the 1980s China experienced 'an explosion of pent-up entrepreneurship' facilitated by wide-ranging, although often unorthodox, economic reforms. This article uses data on the output of 23 industrial sectors in seven coastal regions (provinces and counties) over the period 1985 to 1989 to study the correlates of growth. Although industry-specific features the degree of specialization and competition had some influence on growth, much of the action came from region-specific influences and regional spillovers? Regional influences included the open-door policies and special economic zones that successfully attracted investments from overseas Chinese to particular locations. Existing regional strengths, especially high-quality human capital and infrastructure, also contributed to growth. The results illuminate the interplay between conditions conducive for growth for example; the contribution of foreign expertise is greatly enhanced by available human capital. China made judicious use of the advantages of backwardness by targeting areas that were less developed and less encumbered by the legacy of existing institutions, although it was fortunate in this regard that the backward regions were in close proximity to Hong Kong and Taiwan (China). Important also was the transmission of growth impulses across the provinces and counties, possibly through perform cadre and administrative networks.
167 citations
TL;DR: Wong et al. as mentioned in this paper have shown that SEZs have generally proved to be a successful means of fostering economic growth and prosperity, but there do exist variations in the relative success of SEZ both within China, and between China and other countries.
Abstract: Special economic zones (SEZs) have been adopted by many countries, particularly in the Asia region, as a popular means by which to foster and stimulate economic development (Wong and Chu 1985; Oborne 1986). Encouraged by the success of SEZs in other Asian regions and countries in the 1960s and 1970s, China set up four SEZs in 1979, including one in Shenzhen. As a result of its extraordinary growth and success, Shenzhen SEZ has itself become a positive example and impetus for the rest of the world. Although a large number of SEZs are already in operation around the globe (approximately 400), it is likely that a growing number of SEZs will continue to appear, both in Asia and worldwide. This is because SEZs have generally proved to be a successful means of fostering economic growth and prosperity. However, despite their general effectiveness, there do exist variations in the relative success of SEZs both within China, and between China and other countries. For example, within China, Guangdong's other two SE...
50 citations
TL;DR: In China, education agents are often hired to assist students in finding an internati... as mentioned in this paper, which is a third-party entity who is paid to assist a student to find, apply to, and/or prepare for college.
Abstract: An education agent is a third-party entity who is paid to assist a student to find, apply to, and/or prepare for college. In China, agents are often hired to assist students in finding an internati...
46 citations
TL;DR: The authors examines the many estimates of Chinese investment in Hong Kong, tracing their sources and bases of estimation, and concludes that most of these estimates are crude guesses with very little empirical support.
Abstract: Over the last decade, China has been the leading investor among developing countries and Hong Kong is the foremost destination of Chinese investment. However, China’s outward investment has been grossly understated in official statistics due to avoidance of China’s foreign exchange controls. This paper tries to appraise those investment flows both quantitatively and qualitatively.
It examines the many estimates of Chinese investment in Hong Kong, tracing their sources and bases of estimation. Most of these estimates are found to be crude guesses with very little empirical support. However, from the data on asset value and market capitalisation of listed Chinese companies in Hong Kong, and also from interviews with knowledgeable sources, it is possible to gauge the rough size of Chinese investment in Hong Kong. The paper also examines China’s economic presence in major sectors of the Hong Kong economy. It discusses the composition of Chinese investment by industry and by ownership ...
41 citations