1993-04-02 13:14
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Activity 1.8 The role of Hong Kong in the development öfON
Guangdong Province
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(New. To be completed paid
19.28 One of the most notable developments observed in the 1980s was the exceptional economic growth in China's coastal
provinces, particularly Guangdong. It was exceptional on two counts: first, because there are few other examples of double-digit growth rates; second, because that growth occurred
in part of a communist country. It is primarily the latter
circumstance that provides food for thought, for it corresponds
to a political reality, but less and less to an economic reality.
In fact, as a result of the stimulus provided by intensified
trade relations with Hong Kong, Guangdong is evolving towards a market economy unconstrained by the central government's
economic plan.
19.29 Over the past fifteen years, the province's relations
with Hong Kong have expanded on all fronts: trade in goods, in
the first instance, but also in terms of capital and technology
flows, These relations are based on complementarities between
the factors of production in Hong Kong and Guangdong. While
Guangdong has a plentiful supply of cheap labour as well as
space, which is lacking in Hong Kong, the latter has the
financial and commercial set-up which firms in Guangdong need
to export their goods. The two economies have thus become
more and more intertwined, despite the difference in political
regime.
19.30 This economic co-operation has brought about a change in the institutional set-up in Guangdong Province which may
be considered as the first of the kind in a communist regime. The centrally planned economy has given way to a market
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