Services in Trade of Hong Kong and Macao: Factors Influence on the Share

Abstract

This study aims to determine factors influence on the share of services in international trade of Hong Kong and Macao based on the statistical data and analytical reviews of Hong Kong's Census and Statistics Department, World Trade Organization's Statistics, and International Trade Statistics. As Eastern subregion of the Asian continent, the performance of services in both special administrative regions (SARs) of China have shown the competitiveness in international trade according to the WTO’s Statistics of 2015 and 2016. Special attention is made on the Closer Economic Partnership Arrangement (CEPA) on trade in services with China. In order to establish a theoretical framework, qualitative method is applied to collect data and analyze statistics and reviews within the context of services and perspective of international trade based on the literature review. According to the analysis, the share of services in international trade of both SARs is determined that it is influenced by the multiple factors: liberalization processes, development of technology, agreement, and government support.