Hong Kong business through countertrade : past, present and future

The Hong Kong economy is dependent on external trade which is growing as governments have become more positive towards promoting unrestricted multilateral trade. It is paradoxical that barter and countertrade, forms of trade predating the use of money and trade finance continue to grow in importance. The paper examines the role of countertrade in Hong Kong\u27s foreign trade, offering a contextual background to propose that countertrade has been an important element in the development of international trade and investment. Available evidence is considered, the implications are discussed and a number of propositions made. There is a need for empirical research to confirm the role of countertrade given that the available evidence is limited; and to test the propositions put forward. The importance of China countertrade to Hong Kong and the impact of policy changes must be part of a research agenda