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Economics Department Working Paper 124. This paper describes the de facto economic integration taking place between China, Hong Kong China and Chinese Taipei - the "Chinese Economic Area" - and analyses basic factors underlying the process. Even in the face of weak economic performance in OECD countries the integration has helped underpin rapid growth in all three economies, particularly in China's south-eastern provinces. If Chinese
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Econometric tests do not support the standard theories of investment demand. Therefore policies based on these theories may be ineffective. OECD Economic Studies No. 16.
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