Hong Kong SAR: Meeting the Challenges of Integration with the Mainland

By William Lee, Jorge A Chan-Lau, Dora M Iakova, Papa M N'Diaye, Tao Wang, Ida Liu, Hong Liang, Eswar S Prasad

February 12, 2004

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William Lee, Jorge A Chan-Lau, Dora M Iakova, Papa M N'Diaye, Tao Wang, Ida Liu, Hong Liang, and Eswar S Prasad. Hong Kong SAR: Meeting the Challenges of Integration with the Mainland, (USA: International Monetary Fund, 2004) accessed September 19, 2024

Summary

This Occasional Paper provides an overview of the main challenges facing Hong Kong SAR as it continues to become more closely integrated with the mainland of China. Section I provides an overview of recent macroeconomic developments and the main policy issues in Hong Kong SAR. Section II examines various aspects of the ongoing integration with the mainland, and the associated implications for the structure of the economy, and for macroeconomic and structural policies. Section III examines the medium-term fiscal outlook under different policy scenarios and discusses alternative policy options to restore fiscal balance. Section IV reviews recent developments in the real estate sector and their macroeconomic impacts. Section V presents an econome tric analysis of deflation and its determinants. Section VI examines the factors behind, and the implications of, rising wage inequality in Hong Kong SAR. Section VII presents an overview of recent developments in the financial sector and provides an assessment of Hong Kong SAR’s prospects as an international financial center.

Subject: Education, Expenditure, Housing prices, Labor, Land prices, Prices, Wages

Keywords: East Asia, Europe, Global, Hong Kong SAR, Hong Kong SAR government, Housing prices, Land prices, OP, Price, Price convergence, Productivity shock, SAR., Wage inequality, Wages

Publication Details

Pages:

71
Volume:

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DOI:

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Issue:

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Series:

Occasional Paper No. 2004/003
Stock No:

S226EA
ISBN:

9781589062948
ISSN:

0251-6365

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