Department of Economics
Impact of CEPA on the labor market of Hong Kong
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. © 2012.
Counterfactual analysis, Hong Kong labor market, Panel data, Unemployment
Source Publication Title
Chia Economic Review
Ching, Steve, Cheng Hsiao, and Shui Ki Wan. "Impact of CEPA on the labor market of Hong Kong." Chia Economic Review 23.4 (2012): 975-981.