A PANEL DATA APPROACH FOR PROGRAM EVALUATION : MEASURING THE BENEFITS OF POLITICAL AND ECONOMIC INTEGRATION OF HONG KONG WITH MAINLAND CHINA

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journal

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Author(s)

  • Cheng HSIAO
  • H. Steve CHING
  • Shui Ki WAN

Detail(s)

Original languageEnglish
Pages (from-to)705-740
Journal / PublicationJournal of Applied Econometrics
Volume27
Issue number5
Online published4 Jan 2011
Publication statusPublished - Aug 2012

Abstract

We propose a simple‐to‐implement panel data method to evaluate the impacts of social policy. The basic idea is to exploit the dependence among cross‐sectional units to construct the counterfactuals. The cross‐sectional correlations are attributed to the presence of some (unobserved) common factors. However, instead of trying to estimate the unobserved factors, we propose to use observed data. We use a panel of 24 countries to evaluate the impact of political and economic integration of Hong Kong with mainland China. We find that the political integration hardly had any impact on the growth of the Hong Kong economy. However, the economic integration has raised Hong Kong's annual real GDP by about 4%.

Research Area(s)

  • Economics

Bibliographic Note

Research Unit(s) information for this publication is provided by the author(s) concerned.

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