Sunday, December 13, 2015

Elvis Choi
Dr. Kassens
Econ 122
December 13, 2015

Trading of Hong Kong

For the blog 2, Hong Kong is chosen to analyze by using the UN comtrade data for several reasons. The main reason is because Hong Kong is where I come from and I want to show you more information through the blog. Another reason is Hong Kong is a city which rely on trading (23.9% contribution of GDP (Economic and Trade Information on Hong Kong, 2015)), which is importing good and then export it to others places. For following blog, I am going to talk about the general trading patterns of Hong Kong, one particular good “85 - Electrical, electronic equipment”.


According to the data of UN comtrade in 2013, the top five importer of Hong Kong are China, Switzerland, Japan, United States, Other Asia (not elsewhere specified). And their corresponding import value are about 267 billion, 51 billion, 39 billion, 37 billion and 34 billion. (UN Comtrade Demo, 2015)

The top five exporter are China, United States, Japan, India, Other Asia (not elsewhere specified). And their export value are 320 billion, 42 billion, 18 billion, 11 billion and 11 billion respectively. (UN Comtrade Demo, 2015)

The top three commodities are “85 - Electrical, electronic equipment”, “71 - Pearls, precious stones, metals, coins, etc” and “84 - Nuclear reactors, boilers, machinery, etc”. (UN Comtrade Demo, 2015)

As you can see, it is very obvious that China is the most important trading partner of Hong Kong. In both import and export, China is the top one and its trading value is much higher than other partners, five times or even more. China is in Top Three of each of the Top Three commodities. It is not hard to understand. Hong Kong has a geographical advantage that Hong Kong is just beside the China. The transport distance is short. Hong Kong is also part of the China that it is easier to come up agreement like Closer Economic Partnership Arrangement (CEPA) between two places, which give a big benefit to Hong Kong to trade with China.

 
For the particular good or service (import or export), “85 - Electrical, electronic equipment” was chosen. There is an interesting thing is that if you look at the trade balance graph, the import bar of each good and services is very close to the export bar. It has import value 236 billion and export value 224 billion (UN Comtrade Demo, 2015). The difference is only 12 billion. You would know that most of the imported “85 - Electrical, electronic equipment” are exported to another place. According to top import and export partner, imported goods come from Asia like China, Singapore and South Korea. But exported to the biggest economy like China, US and Japan (UN Comtrade Demo, 2015). This show the role of Hong Kong in trading. For the rest of “85 - Electrical, electronic equipment” (12 billion), a large part of products would be consumed by Hong Kong people. According to a survey, in average, each Hong Kong people own 4.3 electrical devices including mobile phone, personal computer, laptop and so on (CUHK-AIA Survey of E-devices, 2012). It is a very high number in world. It is believed that it is the whole picture of the particular goods “85 - Electrical, electronic equipment”.


All in all, it is just a short discussion about the trading in Hong Kong. Hope you can know more about it.


Reference

CUHK-AIA Survey of E-devices. (2012, August 22). Retrieved December 14, 2015, from http://wecareaboutewaste.com/documents/cuhk_aia_e-devices_survery_gen_public_findings_eng.pdf

UN Comtrade Demo. (n.d.). Retrieved December 14, 2015, from http://www.sas.com/software/visual-analytics/demos/un-comtrade-basic.html
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