Closing the Hong Kong Gap
The Hong Kong Free Dollar Market in the 1950s
Bibliographic Data
| ID | 3391996 |
|---|---|
| Authors | Catherine R Schenk (0000-0003-4116-5883, Royal Holloway University of London, corresponding author) |
| Year | 1994 |
| Volume | 47 |
| Issue | 2 |
| Pages | 335 |
| Publication date | 1994-05-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Economic History Review (JOURNAL) |
| Journal identifiers | ISSN: 0013-0117 • E-ISSN: 1468-0289 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.1111/j.1468-0289.1994.tb01379.x |
| OpenAlex | W2091688168 |
| Language | EN |
| Citations received | 8 |
| References cited | 11 |
In the last io years parallel foreign exchange markets have generated considerable interest among economists in the context of developing countries.2 The imposition of foreign exchange and trade controls to foster economic development in these countries has commonly generated parallel exchange markets, whether black, legal, or informally tolerated. The current research has focused on various aspects of these free markets such as the effect on domestic price stability,3 the effect of devaluation,4 and the impact of the markets on the effectiveness of macroeconomic policy.5 One important feature which has attracted much less interest is why parallel currency markets were tolerated.6 A proper investigation of official motives is important as it permits a better analysis of the thinking that underpinned policy at the time-of the perceived advantages and disadvantages for the economy in general as well as for the monetary authority or government in particular.7 The literature has focused on negative aspects of parallel exchange markets and concluded that a major reason for allowing them to operate is that they are prohibitively expensive to eliminate. McDermott, however, has suggested some positive economic aspects of black markets in foreign exchange for developing countries.8 He argues that, in theory, parallel exchange markets may actually increase foreign exchange earnings and increase employment by allowing a greater volume of imports for export industries than could be allocated from the official reserves. This model depends on a high import content of exports which is often associated with developing countries. It is the purpose of this article to pursue an explanation for the UK toleration of the Hong Kong parallel exchange market in the I950S and to suggest implications of the market for the development of the Hong Kong economy. An historical perspective on parallel exchange markets is lacking
Business · Closing (real estate) · Economic history · Economics · Free market · Liberian dollar · Political science · Finance · Global Financial Crisis and Policies · Hong Kong and Taiwan Politics · Law
| Unique citing works | 6 |
|---|---|
| Citations per year | 0,3 |
| Citation span | 1999 - 2026 (28) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 6 |