Many people were funny about the economic system between Hong Kong and Taiwan although Taiwan is “ Republic of China ” but many people were inquiring to cognize why Hong Kong and Taiwan ‘s economic system can call as the Four Asiatic Tigers without rely China? This term paper will speak about why these two states can hold an outstanding and success of the economic system in this universe.
Hong Kong is one of the most dumbly populated states in the universe with land population denseness of 6 410 individuals per square kilometre. ( Hong Kong Population by District Board District: 1999 ) . Hong Kong entire population is 7,055,071 in 2009. ( Flag counter: Hong Kong ) Hong Kong was colonisation by The United Kingdom so their official linguistic communications are both Cantonese and English ; Hong Kong has several of the cultural groups include 95 % of Cantonese and 5 % of others ( Hong Kong Indian, Chinese Immigrants and British ) . There are around 22,894,384 of people in Taiwan and it is the 8th most dumbly of populated state in the universe with the land population denseness of 635 individuals per square kilometre, ( Nartjai ) . Although Taiwan had got colonized by Holland and Japan but their official linguistic communication is still Chinese and Chinese ( Hokkien ) ; the cultural groups in Taiwan are 98 % of Han Chinese, those colonists were most from the South of China. Chart 1 show the GDP of buying power para between Taiwan and Hong Kong.
Chart 2 shows the GDP of existent growing rate between Taiwan and Hong Kong.
Chart 3 shows the GDP per capita between Taiwan and Hong Kong.
( Hong Kong GDP Growth Rate. ) ( Taiwan`s GDP Growth Forecast Reduced to 4.27 % for 2008: TIER. )
As we see upon of the chart 1, Taiwan ‘s GDP of buying power para are higher than Hong Kong but it is non average Taiwan is rich than Hong Kong because it have to bespeak other portion such as the environment, public services, and pollution etc, . In 2009 because of US fiscal crisis Taiwan and Hong Kong GDP existent growing Rate were both got lessening from the crisis particularly Hong Kong, Hong Kong is one of the concern city of Asia and Pacific so the US fiscal crisis did impact the economic system in Hong Kong a batch. In Chart 3, the GDP per capita between Taiwan and Hong Kong were remain stably did n’t turn excessively high or excessively low, from the chart we can see Hong Kong had high GDP per capita than Taiwan around 10000 US dollars.
In 2009, the unemployed rate in Hong Kong is 5.2 % , ( Unemployment Rate in Hong Kong ) 5.85 in Taiwan. Taiwan was the highest unemployed rate among the Four Asiatic Tigers. The unemployed rate in Taiwan was turning by each twelvemonth because the alterations of Taiwan ‘s industry construction was affect Taiwan ‘s unemployed a batch since 1980. The alterations of Taiwan ‘s industry construction were altering quickly so many companies were move to other state that can pay the lower wages for the worker such as China so hence many high instruction people in Taiwan could n’t happen the occupation and so the unemployed rate in Taiwan are higher by each twelvemonth. The unemployed rate in Hong Kong is the 2nd highest among the Four Asiatic Tigers. The ground why Hong Kong unemployed rate is high because if Cantonese want to do a mill, they wo n’t do it in Hong Kong because they know the rental fee and the wages have to pay higher than China so they are instead to construct the company in China and direct the goods from China to Hong Kong everyday, although it sounds cost a batch but the cost of transit fee is still cheaper comparison if the company merely construct the mill in Hong Kong. No affair it is in Hong Kong or Taiwan, they both got the same job with the alterations of their ‘ states ‘ industry construction. The authoritiess truly have to concern this serious job.
As you know Hong Kong and Taiwan is the member of Four Tigers. However their economic development way is wholly different. Now I will state you about CPI, economic freedoms of Hong Kong and Taiwan, and the ECFA and CEPA which were signed by two sides.
CPI ( Consumer Price Index )
Consumer Price Index ( abbreviated CPI ) , in economic sciences, is a contemplation of the occupants populating related merchandises and services monetary value index statistics out of the monetary value alterations to per centum alteration in the look. It is one of the cardinal indexs to mensurate rising prices. General definition of more than 3 % for rising prices, more than 5 % is more serious rising prices.
The CPI can be performed as CPI= Update cost/ Base period cost *100. The “ updated cost ” is divided by the initial twelvemonth, so multiplied by one 100. ( Education 2020 Homeschool Console, capable Economics, talk “ Inflation ” . Formula described within. hypertext transfer protocol: //en.wikipedia.org/wiki/Consumer_price_index # cite_note-1 )
Hong Kong: In 2010, the RMB grasp, the planetary oil monetary values surging no uncertainty the suppression of the Hong Kong economic system. The 2nd half of last twelvemonth, the Chinese belongings monetary values rose aggressively, driving belongings monetary values in Hong Kong besides rose. Raise monetary values a few people take advantage of this to do money, ensuing in the Hong Kong CPI rose. To this terminal, the Government raises a series of steps to command monetary values and stamp down the belongings market such as Including edifice public assistance, and societal convenience steps to avoid a recession. However, because of the planetary economic system taking, the effects of Government ‘s steps are non valid.
hypertext transfer protocol: //www.censtatd.gov.hk/hong_kong_statistics/statistical_tables/index.jsp? charsetID=1 & A ; tableID=052
Taiwan: Different from Hong Kong, Taiwan ‘s authorities has direct control over the economic system. Therefore, the planetary economic system alterations can straight impact Taiwan ‘s economic system. Affected by unnatural conditions, decrease of the planetary production like wheat and other agricultural and mineral natural stuffs, in nutrient monetary values lifting to the public presentation of the nutrient monetary value additions straight above. Taiwan ‘s rising prices straight is in footings of public presentation of lifting nutrient monetary values. However, because non many foreign-funded endeavors in Taiwan, so Taiwan ‘s rising prices is less serious than Hong Kong. If the per centum of foreign-funded endeavors in Taiwan can every bit long as be controlled, and the authorities is able to forestall of NTD grasp, so rising prices in Taiwan is wholly evitable.
Economic freedom is a term used in economic and policy arguments. As with freedom by and large, there are assorted definitions, but no universally accepted construct of economic freedom. The free market point of view understands economic autonomy as the freedom to bring forth trade and devour any goods and services acquired without the usage of force, fraud or larceny. This is embodied in the regulation of jurisprudence, belongings rights and freedom of contract, and characterized by external and internal openness of the markets, the protection of belongings rights and freedom of economic initiative.m by HongKong
hypertext transfer protocol: //www.heritage.org/index/Visualize? countries=hongkong & A ; type=6
As you can see the chart which was shown below, Hong Kong has a highest and stable economic freedom. And these 5 old ages, Taiwan was been given more freedom of economic system, which led the development of economic market.
ECFA ( Economic Cooperation Framework Agreement ) : The Economic Cooperation Framework Agreement ( abbreviated ECFA ) is a discriminatory trade understanding between the authoritiess of the People ‘s Republic of China ( mainland China ) and the Republic of China ( Taiwan ) that aims to cut down duties and commercial barriers between the two sides. It will hike the current US $ 110 billion bilateral trade between both sides. The trade is thought to be structured to profit Taiwan far more than mainland China. The advantage to Taiwan would amount to US $ 13.8 billion, while mainland China would have benefits estimated at US $ 2.86 billion. Mainland China will besides unfastened markets in 11 service sectors such as banking, securities, insurance, infirmaries and accounting, while Taiwan agreed to offer wider entree in seven countries, including banking and films.
CEPA ( Closer Economic Partnership Arrangement ) : is an economic understanding between the Government of the Hong Kong Special Administrative Region and the Central People ‘s Government of the People ‘s Republic of China, signed on 29 June 2003.The understandings and extra addendums were signed in the Chinese linguistic communication ; the Chinese text is hence the important text. The Hong Kong authorities by and large provides a courtesy English interlingual rendition, as English is one of the official linguistic communications of Hong Kong.
To beef up trade and investing cooperation between Mainland China and Hong Kong and advance joint development of the two sides, through the execution of the undermentioned steps:
1 increasingly reduces or eliminates duties and non-tariff barrier on well all the trade in goods between the two sides ;
2 increasingly achieve liberalisation of trade in services through decrease or riddance of well all prejudiced steps ;
3 promote trade and investing facilitation.
If we compare the economic system with Hong Kong and Taiwan 3 old ages ago, we may experience Hong Kong has a larger and stronger market. The recent planetary economic recession, Hong Kong ‘s economic system is affected. Taiwan began to open the mainland market economic system and foreign economic markets. Although Hong Kong ‘s economic system among the best in the Asia Pacific part, but planetary economic recession in Taiwan have non been greatly affected. Although Taiwan ‘s economic system in the short term can non be more than Hong Kong, Taiwan ‘s economic development potency, we still must non be ignored.