The character of producer service demand in mainlandChina : its repercussion on Hong Kong's serviceindustries

by Tsze-wah Gabriel Chan

Institution: University of Hong Kong
Year: 2017
Keywords: Service industries - China - Hong Kong; China - Service industries
Posted: 02/01/2018
Record ID: 2155124
Full text PDF: http://hdl.handle.net/10722/239926


Abstract of thesis entitled THE CHARACTER OFPRODUCER SERVICE DEMAND IN MAINLAND CHINA ITS REPERCUSSION ONHONG KONGS SERVICE INDUSTRIES Submitted by Chan Tsze-wah,Gabriel For the degree of Doctor of Philosophy At theUniversity of Hong Kong In February 2016 A commonconviction is that Hong Kongs economic future hinges on itssuccessful integration with Mainland China, but despite MainlandChinas vast increase in national income since the beginning of themillennium, Hong Kongs yearly GDP growth rate has been showing adownward trend. This thesis seeks to uncover the causes for thefeebleness of the growth momentum in Hong Kongs service economythrough studying contextually the interactions between Hong Kongsproducer service industries and the demand from the mainland fromthe beginning of the new century to date. To deepen theunderstanding of the economic integration process between Hong Kongand Mainland China, in the study, the characteristics of producerservice demand and the structural restraints on the demand forknowledge-intensive producer services in the Mainland market areintroduced as a critical factor, and focus is also placed on thecapabilities of Hong Kongs producer service providers and whetherthe city can provide the producer service needs of Mainland Chinacompetitively. The thesis finds that the low income elasticitiesof trade and transport services provided by Hong Kong to themainland as well as intensive competition from mainland providersin respect of those services, the under-development of demand forknowledge-intensive producer services on the mainland, the citysweakness in scientific and technological services, the decline inthe demand for financial and professional services due to reductionin overseas fund-raising activities by Mainland enterprises, andthe general obstructiveness of the Mainland market to Hong Kongservice providers have largely constituted the present economicwoes of the service economy of Hong Kong. In the long-term, due tothe expected progressive enhancement of Mainland Chinascompetitiveness relative to Hong Kong and the likelihood of thecontinuation of the present unfriendliness in the Mainland market,there is doubt whether Hong Kong can just rely on the Mainlandmarket to anchor its long-term economic development. The thesisalso finds that in Mainland China, there are deep-rooted structuralrestraints on the development of knowledge-intensive producerservices, an effective conduit for the dissemination of knowledge,and the country needs to overcome such restraints in order toenhance the employment of knowledge-intensive producer services soas to increase the knowledge intensity of its production systemsand achieve success in its present economictransformation. published_or_final_version Geography Doctoral Doctor of Philosophy