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City-regionalism plays an increasingly important role in China's economic development. This paper analyses new forms of institutional arrangements that promote city-regional governance in the case of Hong Kong and Guangdong. Focusing on implementing the Closer Economic Partnership Arrangement (CEPA), we examine two research questions: Why are Guangdong and cities in the PRD strategically selected to implement CEPA and embed Hong Kong-based circulatory capital? How do governments at different scales build coordinated relationships to implement CEPA? Building upon the literature on state rescaling, we argue that governments have engaged in a scalar division of administration – a form of institutional infrastructure that aims to design and implement state strategies of urban and regional development. Within this division, the national government plays a role in steering and decision-making, Guangdong provincial government in coordination and facilitation, and urban governments in Shenzhen, Guangzhou, and Zhuhai in actual implementation. CEPA implementation is built upon vertical linkages between governments at different levels in the Mainland and HKSAR government, and horizontal linkages between three free trade subzones (Qianhai, Nansha, and Hengqin) and Hong Kong-based firms and entrepreneurs. [ABSTRACT FROM AUTHOR]

• We compared the structural characteristics of 18 urban agglomerations in China. • Our framework contained analysis of 3 different scales based on 4 elements' flows. • Guangdong-Hong Kong-Macao urban Agglomeration had the greatest average flow (5.15). • Shandong Peninsula Urban Agglomeration had the best performance in overall network. • Cities with high centrality were in the bidirectional or main spillover subgroups. Flows of different elements among cities can affect urban organizational structures, leading to specific links between and roles for cities within urban agglomerations. Previous studies have mainly focused on flows produced by specific elements in a single urban agglomeration, and they cannot reveal differences in organizational structures affected by multiple elements among different urban agglomerations. Therefore we selected 18 typical urban agglomerations in China and explored their structural characteristics under comprehensive effects of four elements: economy, resources, population and technology, with gravity model and social network analysis. Guangdong-Hong Kong-Macao Urban Agglomeration had a maximum flow intensity of 5.15, this concentration range was the largest from 0.65 to 3.75, indicating that more elements flowed internally. Shandong Peninsula Urban Agglomeration had the largest network density at 0.412, the lowest efficiency at 0.567, and the lowest hierarchy at 0.000, showing that intercity relationships within SP were the tightest among the18 urban agglomerations. Geographical proximity and topological structure of subgroups proved that connections among subgroups were not complex, and cities of different provinces lacked close interactions. Furthermore, most of the key cities with high centrality indexes were municipalities directly under the Central Government or provincial capitals; these cities played important roles in networks and were distributed into "main spillover" and "bidirectional spillover" subgroups. This paper provides a unified analytical framework aimed at urban agglomerations that accounts for flows of multiple types of elements and explores urban organizational structures, and our results could provide scientific guidance for promoting the coordinated and sustainable development of urban agglomerations. [ABSTRACT FROM AUTHOR]

Economic cooperation between Hong Kong and Mainland China, especially Guangdong province, has flourished since the establishment of the Hong Kong Special Administrative Region in 1997. The landmark is the conclusion of the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and the Mainland in 2003. CEPA covers liberalisation of trade in goods, liberalisation of trade in services, mutual recognition of professional qualifications, and other trade facilitation measures. This paper uses the collaborative governance regime framework to analyse the economic cooperation between Hong Kong and Mainland China under CEPA. This case shows that if there are environmental conditions generating incentives for both parties to cooperate, a committed leadership on both sides to drive the regime, and institutional arrangements that could facilitate the collaborative dynamics, effective collaboration between players from different political and institutional backgrounds can still be achieved. [ABSTRACT FROM PUBLISHER]

Shenzhen Special Economic Zone (SEZ) has been the flagship labouratory of Deng Xiaoping’s reform and open-door policy and the forerunner of China’s capitalist transformation. The initiation of the Shenzhen SEZ was driven by the imperative of political and economic survival along the state hierarchy and was informed by the international practices of export processing zones (EPZs). Shenzhen’s capitalist fundamentals, such as the commodification of land and labour, were largely established through imitating its ‘big master’ Hong Kong across the border. However, Shenzhen’s policy learning style has gradually shifted from laissez-faire Hong Kong to authoritarian Singapore, propelled by the aspiration, shared among policy-making party élites across China’s administrative hierarchy, of perpetuating the single-party rule. Theoretically, this paper demonstrates how policy mobility is shaped path-dependently by the pre-structured institutional/ideological regime, in what ways the idiosyncratic geographical/historical conjuncture matters, and why political representation and participation are crucial to policy selection and mutation. [ABSTRACT FROM PUBLISHER]

This paper sets up a trade theoretic model to explain the output, price and welfare consequences of the outward investment from Hong Kong to the Pearl River Delta. A four-good trade theoretic model is set up to incorporate some special features of the Hong Kong Economy. We assume that the economy produces four goods: an exportable good, an importable good and two non-traded goods. A special feature of the model is that one of the non-traded goods (locally produced) is also consumed by foreigners and produced under the assumption of non-competitive market framework. As tourist or business-centre trade is of great significance to Hong Kong, this model allows us to capture this phenomenon. First, precise conditions are derived regarding the decline in manufacturing output in Hong Kong. Second, it is shown that, in spite of the supply side determination of the relative price of non-traded goods, income effects in this market are of great significance in both income (welfare) and output movements. These income effects cannot be captured in industrial organization type applied work. Third, it is shown how outflow of capital affects labour productivity. A surprising result obtained for this part of the analysis is that a fall in productivity (outflow of capital and de-industrialization) creates a favourable terms-of-trade effect in the monopolized sector. The welfare effect consists of four terms: (1) a terms-of trade effect via the price of non-traded goods consumed by tourists/foreigners; (2) the loss (gain) in productivity due to an outflow of capital; (3) repatriation payments; and (4) the gains from exporting from the Special Economic Zones as well as other Pearl River Delta cities. Our decomposition has two very important features in contrast to traditional models: a terms-of-trade effect from the consumption of services and productivity gains or losses. The last point is exceedingly important for policy makers specifically if outward flow of capital affects productivity negatively. [ABSTRACT FROM AUTHOR]