By Yun-Wing Sung (auth.)
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Extra info for The Emergence of Greater China: The Economic Integration of Mainland China, Taiwan and Hong Kong
Though Hong Kong has suffered two recessions since reversion in 1997, Hong Kong’s trade and investments with the Mainland have continued to grow. Economic integration with the Mainland has become the cornerstone of Hong Kong’s economic strategy. Despite the rapid development of Mainland–Taiwan economic ties, political relations have at times been strained, especially after the election of Chen Shui-bian, candidate of the pro-independence DPP, to Taiwan’s presidency in 2000. The intricacies of Mainland–Taiwan relations will be discussed later in Chapter 3.
The barriers may be institutional (for example, tariffs) or natural (for example, transportation costs). In the jargon of economics, economic integration may not imply a tightly knit relationship. For instance, it has often been said that the decrease in the cost of transportation has led to global economic integration. There are three different types of institutional barriers to international economic exchange: 1. Barriers to movement of goods, such as tariffs and quotas. 2. Barriers to movement of factors of production (labour and capital), such as controls on migration.
As East Asian countries liberalized their economies in the 1980s, numerous SEZs emerged because of geographic and market forces. Trade and investment ﬂows grew among geographically contiguous but politically separate border areas, taking advantage of the complementarities in factor endowment and technological capacity among countries at different stages of economic development (Chia 1993). These SEZs are variously called transnational export processing zones, natural economic territories (Scalapino 1992) or growth triangles (the ASEAN term).