Qunhua Yuan

School of Economic and Trade, Guangdong University of Foreign Studies, China

yqh15@126.com

Empirical analysis of the impact of Hong Kong's offshore trade on its economic growth

Xiaoru Zhang

School of Mathematics and Statistics, Hubei University,

China

zxr5260@163.com

Abstract. As the rapid development of offshore trade has become an important pillar of Hong Kong's economy, analyzing the economic growth effect of Hong Kong's offshore trade is of great significance. This paper analyzes the impact of offshore trade on Hong Kong's economic growth during the period of 2002 to 2017 on the basis of a review of the research on the development of offshore trade in Hong Kong and the study of the economic growth effects of trade in the perspective of its particularity. Based on the theoretical analysis, this paper then empirically examines the economic growth effect of Hong Kong's offshore trade and concludes that offshore trade has promoted Hong Kong's economic growth, thus becoming an important factor of growth. Finally, it proposes policy recommendations for developing offshore trade to promote Hong Kong's economic growth: attract multinational corporations to set up headquarters or offices in Hong Kong, strengthen Hong Kong's economic ties with mainland China, and accelerate the development of RMB offshore financial markets in Hong Kong. From a global perspective, Hong Kong, as a bridge linking the regional and global economies has not only promoted the optimal allocation of factors of production and resources in the region, but also enhanced the facilitation of foreign trade and international competitiveness.

Received: May, 2020

1st Revision: April, 2021

Accepted: May, 2021

DOI: 10.14254/2071-8330.2021/14-2/7

JEL Classification: F10, F13, O24

Keywords: Hong Kong, offshore trade, economic growth