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Economic Growth and International Trade: The Case of Hong Kong
Author(s) -
Chou Win Lin,
Wong Karyiu
Publication year - 2001
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.00136
Subject(s) - spillover effect , economics , foreign direct investment , capital good , international economics , investment (military) , production (economics) , capital (architecture) , international trade , monetary economics , macroeconomics , economy , goods and services , history , archaeology , politics , political science , law
This paper estimates the major factors of growth of Hong Kong using a fairly new approach, which allows the direct inclusion of the factors of growth in the growth equation to be estimated. The growth factors that are found to be important for Hong Kong are physical capital accumulation, (negative) growth of unskilled workers, education, technology spillover (from foreign countries) through retained import of capital goods and inward direct investment, and learning‐by‐doing through import and domestic manufacturing production. The results strongly suggest that other than primary factor accumulation, education, trade, and foreign direct investment have contributed a lot to the growth of the economy.