Template-type: ReDIF-Paper 1.0 Author-Name: Sharif, Naubahar Author-Email: sosn@ust.hk Author-Workplace-Name: Hong Kong University of Science and Technology Author-Name: Huang, Can Author-Email: huang@merit.unu.edu Author-Workplace-Name: UNU-MERIT Title: Cross-border Investment and Economic Integration: The Case of Guangdong Province and Hong Kong SAR Abstract: In this paper, we undertake a comparative study of the performance of local and foreign competitors’ manufacturing firms in a FDI-recipient region—Guangdong Province, China—and analyzes the policy implications of the comparison for the advanced, FDI-outflow region—Hong Kong Special Administrative Region (HKSAR). By highlighting changes in productivity that vary with changes in manufacturing firm ownership, we reveal that domestic firms have been catching up with their foreign counterparts, including Hong Kong-based firms, though foreign firms have successfully strengthened their dominating position in Guangdong’s manufacturing industry. Classification-JEL: D24, L60, O47 Keywords: Total Factor Productivity, Manufacturing Sectors, Asia, China, Guangdong, Hong Kong Series: UNU-MERIT Working Papers Creation-Date: 2008 Number: 2008-035 File-URL: https://unu-merit.nl/publications/wppdf/2008/wp2008-035.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2008035