UNU-MERIT Working Papers Series
Cross-border Investment and Economic Integration: The Case of Guangdong Province and Hong Kong SAR
Naubahar Sharif & Can Huang #2008-035In this chapter, we undertake a comparative study of the performance of
local and foreign competitors’ manufacturing firms in a FDI-recipient
region—Guangdong Province, China—and analyzes the policy implications of
the comparison for the advanced, FDI-outflow region—Hong Kong Special
Administrative Region (HKSAR). By highlighting changes in productivity
that vary with changes in manufacturing firm ownership, we reveal that
domestic firms have been catching up with their foreign counterparts,
including Hong Kong-based firms, though foreign firms have successfully
strengthened their dominating position in Guangdong’s manufacturing
industry.
JEL Codes: D24; L60; O47
Key words: Total Factor Productivity, Manufacturing Sectors, Asia,
China, Guangdong, Hong Kong
UNU-MERIT Working Papers
ISSN 1871-9872
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