Essay on FDI Flows in the Pearl River Delta and Hong Kong

Essay on FDI Flows in the Pearl River Delta and Hong Kong

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The history of Hong Kong is an interesting one and moreover, it has defined Hong Kong as an export oriented region. This section therefore explores the most important historical developments of Hong Kong, and discusses the effects on the economic development.
Towards colonization
Geographically, Hong Kong consists of three large regions; a region that is attached to China (New territories and Kowloon), Hong Kong Island and Lantau (see figure ???). The soil is fertile, and due to its abundance of sea, the habitants of Hong Kong have always been able to richly harvest fish (Roberts, Ling, & Bradshaw, 1992). However, the West has valued Hong Kong for something else; its unique geographical location. Situated at the mouth of the Pearl River Delta, Hong Kong has been interesting ever since the West discovered China’s products. Throughout history, the Pearl River Delta has been the gateway for trade with the Western world, since there is very little east of China except for Japan which was unwilling to trade for many decades. So, when the West, and especially Britain, discovered Chinese tea, silk and chinaware, their ships would set course for the Pearl River. However, China enforced strict policies regarding trade, which complicated matters for the western merchants. After the Opium War (which was discussed more in-depth in section 2.2.1) Britain finally achieved its objectives; they could establish free trade ports and abolished many trade restrictions. Moreover, they colonized Hong Kong, making it an imperial outpost for economic exchanges (Roberts, Ling, & Bradshaw, 1992).
Hong Kong: a colony (1843-1997)
With Hong Kong as its colony, and less trade restrictions Britain was able to expand trade with China, which provided an imp...


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...movement during the Sino-Japanese War 1937-1945. In D. Twitchett, & J. Fairbank, The Cambridge History of China (pp. 609-722). London: Cambridge University Press.
Wakeman, F. (1978). The Canton trade and the Opium War. In D. Twitchett, & J. Fairbank, The Cambrige History of China (Vol. 10, pp. 163-212). London: Cambrige University Press.
Wong, K. (1987). China's Special Economic Zone Experiment: An Appraisal. Human Geography , 69 (1), 27-40.
Yeung, Y. (2010). The Further Integration of the Pearl River Delta : A New Beginning of Reform. Environment and Urbanization Asia , 13-26.
Yeung, Y., Lee, J., & kee, G. (2009). China's Special Economic Zones at 30. Eurasian Geography and Economics , 50 (2), 222-240.
Zeng, D. (2011). How Do Special Economic Zones and industrial Clusters Drive China's Rapid Development. Washington: World Bank: Policy Research Working Paper.

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