This paper examines the locational choices of Hong Kong and U.S. direct investments (DI) in China using a regional data set from 1990 to 1999. The results of the panel regressions show that there are various similarities and differences in the significance and the magnitudes of the determinants...

Hong Kong is often perceived to be a pure model of unilateral free trade. We argue here that in a era when services are internationally tradable and when Hong Kong has become mainly a service economy, this perception is not entirely true. Nonetheless, Hong Kong is basically able to fend off the...

China's trade has three features: high incidence of re-exports through Hong Kong, high degree of trade related to foreign investment, and large amount of `illegal' trade. Re-exports occur when imports to Hong Kong are consigned to a buyer in Hong Kong, who adds a markup, and exports the goods...

This paper discusses the nature and determinants of trade of Mainland China, Hong Kong, and Taiwan, a region often called "Greater China." Trade between Hong Kong and China is characterized by at least two features: re-exports and outward processing. China is both the largest source and largest...