An Analysis of the Impact of RMB Depreciation on Hong Kong
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Keywords

RMB
China
Hong Kong
Asian financial crisis
FDI
Trade
Tourism
Retail sales.

How to Cite

LI, R. Z. (2019). An Analysis of the Impact of RMB Depreciation on Hong Kong. Journal of Economics Bibliography, 6(4), 375–403. https://doi.org/10.1453/jeb.v6i4.1967

Abstract

Abstract. Hong Kong is one of the main economies operating a currency board system today. With its currency fixed to the U.S. dollar, the system has functioned successfully since it was restarted in 1983. The last time it faced severe challenges was during the East Asian financial crisis of 1997-98. However, with the comparatively large depreciation of renminbi (RMB, and sometimes referred to as Yuan) during the past two years, a rising question is how Hong Kong might be affected by a possible future crisis originating from China. In this paper, we examine the impact of RMB depreciation on Hong Kong, with a focus on three sectors of Hong Kong’s economy: foreign direct investment, external trade, and tourism.

Keywords. RMB, China, Hong Kong, Asian financial crisis, FDI, Trade, Tourism, Retail sales.

JEL. E39, O53.
https://doi.org/10.1453/jeb.v6i4.1967
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