A Comparative Study of the Roles of Hong Kong and Shanghai in the Economic Integration of the Pearl River Delta and the Yangtze River Delta

This dissertation, "A Comparative Study of the Roles of Hong Kong and Shanghai in the Economic Integration of the Pearl River Delta and the Yangtze River Delta" by Yin-sheung, Lai, 黎燕嫦, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Abstract for dissertation entitled A Comparative Study of the Roles of Hong Kong and Shanghai in the Economic Integration of the Pearl River Delta and the Yangtze River Delta Submitted by Lai Yin Sheung for the degree of Master of Arts at the University of Hong Kong in June 2006 The implementation of the open door policy enabled China to reestablish contacts with the world. Selected coastal cities were able to engage in foreign trade and receive foreign investment. Under the force of globalization and the new international division of labor, China had achieved rapid economic growth since 1978. Today, China is nicknamed the world's factory. Its export-oriented manufacturing industries located in the Pearl River Delta (PRD) and the Yangtze River Delta (YRD) have contributed a major share of the global output in consumer electronics and apparels industries etc. The two delta regions are regarded as the growth engines of China although different development paths were traced. The development of the PRD is the result of spontaneous investment from foreign sources while the YRD is a designated project under state directives. However, each region has a core city to facilitate economic integration. Hong Kong, Asia's World city, is the core city of the PRD whereas Shanghai, host city of the World Expo 2010, is the dragonhead of the YRD. Apart from the long history of foreign interaction, Hong Kong and Shanghai have unique location advantages, entrepreneurial spirits, and other competitive advantages that out beat other cities in the regions as core cities. In fact, it is the competitive advantages of the core cities that play the key roles in fostering economic integration and cooperation in the delta regions such as being the source of capital, service hub, and transportation and communication center. The prospects of the two regions are rested on the local and international environments. The complexity of the 'One Country, Two Systems' arrangement and the multi-level administrations are believed to be the hindrance to effective implementation of cross-border projects of Hong Kong and the rest of the PRD cities in the Mainland. For the YRD, although Shanghai is the chosen dragonhead of the region and the development within the region is comparatively coordinated, conflicts between cities exist. The joining of the World Trade Organization means more liberal trade measures would be taken in China, however, regions and cities are exposed to fierce competition and unprecedented opportunities for cooperation under globalization. DOI: 10.5353/th_b3659475