Currency Substitution: The Use of Hong Kong Dollars in Southern China

Kui Yin CHEUNG, Cheng Ze FAN

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

Abstract

This paper studies the circulation of Hong Kong dollars in the Chinese Mainland. It first estimates the amount of Hong Kong dollars circulating in southern China in the last fifteen years. The regression analysis indicates that the growth rate of Hong Kongs foreign direct investment in China and the growth rate of trade volume between Hong Kong and China are some of the main determinants that contribute to the widespread use of Hong Kong dollars in southern China. The difference of real returns between Hong Kong dollar denominated assets and Chinese Renminbi denominated assets, however, has no effect on the amount of Hong Kong dollars circulating in China.
Original languageEnglish
Pages (from-to)596 - 607
Number of pages12
JournalJournal of Economic Integration
Volume17
Issue number3
Publication statusPublished - Sep 2002

Fingerprint

substitution
currency
dollar
Hong Kong
China
assets
direct investment
foreign investment
regression analysis
determinants

Keywords

  • Currency Substitution
  • Hong Kong Dollars
  • Hong Kong

Cite this

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title = "Currency Substitution: The Use of Hong Kong Dollars in Southern China",
abstract = "This paper studies the circulation of Hong Kong dollars in the Chinese Mainland. It first estimates the amount of Hong Kong dollars circulating in southern China in the last fifteen years. The regression analysis indicates that the growth rate of Hong Kongs foreign direct investment in China and the growth rate of trade volume between Hong Kong and China are some of the main determinants that contribute to the widespread use of Hong Kong dollars in southern China. The difference of real returns between Hong Kong dollar denominated assets and Chinese Renminbi denominated assets, however, has no effect on the amount of Hong Kong dollars circulating in China.",
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journal = "Journal of Economic Integration",
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}

Currency Substitution: The Use of Hong Kong Dollars in Southern China. / CHEUNG, Kui Yin; FAN, Cheng Ze.

In: Journal of Economic Integration, Vol. 17, No. 3, 09.2002, p. 596 - 607.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

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AU - FAN, Cheng Ze

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N2 - This paper studies the circulation of Hong Kong dollars in the Chinese Mainland. It first estimates the amount of Hong Kong dollars circulating in southern China in the last fifteen years. The regression analysis indicates that the growth rate of Hong Kongs foreign direct investment in China and the growth rate of trade volume between Hong Kong and China are some of the main determinants that contribute to the widespread use of Hong Kong dollars in southern China. The difference of real returns between Hong Kong dollar denominated assets and Chinese Renminbi denominated assets, however, has no effect on the amount of Hong Kong dollars circulating in China.

AB - This paper studies the circulation of Hong Kong dollars in the Chinese Mainland. It first estimates the amount of Hong Kong dollars circulating in southern China in the last fifteen years. The regression analysis indicates that the growth rate of Hong Kongs foreign direct investment in China and the growth rate of trade volume between Hong Kong and China are some of the main determinants that contribute to the widespread use of Hong Kong dollars in southern China. The difference of real returns between Hong Kong dollar denominated assets and Chinese Renminbi denominated assets, however, has no effect on the amount of Hong Kong dollars circulating in China.

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KW - Hong Kong Dollars

KW - Hong Kong

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SP - 596

EP - 607

JO - Journal of Economic Integration

JF - Journal of Economic Integration

SN - 1225-651X

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