- Impact of CEPA on the Labor Market of Hong Kong
- Steve Ching, Cheng Hsiao , Shui Ki Wan
- China Economic Review
- #002168 20131014 (published)
- A panel data method is used to evaluate the impact of the Closer Economic Partnership Agreement (CEPA) signed between Mainland China and Hong Kong. Using the time series data of Hong Kong, Austria, Denmark, Finland, France, Germany, Italy, Japan, Korea, Netherlands, Norway, Singapore, Taiwan, U.K., and U.S. to construct what would have happened to Hong Kong's unemployment rate had there been no CEPA, we find that the CEPA effects gradually increases over time and eventually reached a constant level of reducing Hong Kong's unemployment rate by 9% a year.
- JEL-Codes: C01, C18, C23, C51, C54
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