Economic Prospects of the Development of the Guangdong-Hong Kong-Macao Greater Bay Area: The Competitive Advantages and Importance of the Service Sector

Chong, Terence Tai Leung (2024): Economic Prospects of the Development of the Guangdong-Hong Kong-Macao Greater Bay Area: The Competitive Advantages and Importance of the Service Sector.

Abstract

This paper juxtaposes the features of major bay areas across the globe to identify the competitive advantages of, together with challenges confronting, the Greater Bay Area (GBA) and proffers policy recommendations on areas deemed pivotal to the economic development of the GBA. Under the current path of development, it is found that 6 out of 9 mainalnd GBA cities are not service oriented economies, which is in sharp contrast to the San Francisco Bay area and Tokyo Bay Area. In order to avoid these mainland GBA cities to fall into the middle income trap, this study points out the importance of improving the service sector, especially the financial sector, in these cities. We also provide the first attemp in the literature to estimate the resources needed to push the share of service sector of these cities to 60% and 70% respectively in the coming decade.

• Item Type: MPRA Paper
• Language: English
• Keywords: Greater Bay Area; Service Sector; Hong Kong
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R58 - Regional Development Planning and Policy

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