CONFIDENTIAL
7
機密
Re-exports
of China origin to
Taiwan (HK$ Bn)
Re-exports
of Taiwan
origin to China (HK$ Bn)
Trade surplus
in favour of
Taiwan (HK$ Bn)
1979
0.3
0.1
-0.2
1980
0.4
1.2
0.8
1981
0.4
2.2
1.8
1982
0.5
1.3
0.7
1983
0.7
1.2
0.5
1984
1.0
3.3
2.3
1985
0.9
7.7
6.8
1986
1.1
6.3
5.2
1987
2.3
9.6
7.3
1988
3.7
17.5
13.8
Commentary
10.
The rapid growth in indirect trade between China and Taiwan is a manifestation of two neighbouring economies capitalising on the gains from the increased trading opportunities made possible by a more relaxed political atmosphere. Economic theory suggests that there will be ample opportunity for trade if two economies share similar consumer tastes due to the same cultural, ethnic and language background but have substantial difference in relative factor prices (i.e. the relative price of capital and labour) because of, for instance, drastic differences in factor endowment and stage of development. Trade
between China and Taiwan has been further facilitated by geographical proximity and the excellent infrastructural facilities (both hard ones like the container port and
soft ones likes financial services) available in Hong Kong
CONFIDENTIAL ##
成 機密
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