An Empirical Study on the Influence of the Economic Cooperation between the Mainland of China and Hong Kong on Economic Growth and Industrial Development of HK since the Return to China

This paper presents the economic cooperation between Mainland China and Hong Kong in the past years since Hong Kong’s return in commodity trade, investment, and service trade, and then calculates the trade combined degree. Based on the data from 1994 to 2013, by the empirical methods of unit root tests, co-integration analyses, and Granger causality tests, this paper studied the influence of the commodity trade, investment, service trade on economic growth and the industrial structure of Hong Kong, and draw the conclusion: the goods imports from Hong Kong to the mainland of China don’t show effect on the second industry, so as the service imports on GDP and the tertiary industry. The commodity trade, investment and service exports from Hong Kong to the mainland of China have the positive effect on the GDP growth. The commodity imports of Hong Kong, and the investment from the mainland of China promote the development of the tertiary industry in Hong Kong; then the development of the third industry will promote the service exports from Hong Kong to the mainland of China.