Macao Economy

To fully evaluate the role of tourism economics in the Macao economy

Traditionally, empirical research in tourism economics is often based on econometric analysis of data. One of APAEM’s research is to use frontier macroeconomic models to study the quantitative implications of the tourism industry. Specifically, to fulfil this goal, the Macao Economy team at APAEM plans to (1) integrate tourism economics and macroeconomics; (2) develop a macroeconomic model for the Macao economy; and (3) quantify and mitigate the effects of tourism shocks on the Macao economy.

Through the research in tourism economics, the Macao Economy team expects to better identify the key role of Macao in the “Outline Development Plan for the Greater Bay Area” (known as the “Outline Development Plan”), that is “to support Macao in developing into a world-class tourism and leisure centre”, as well as to provide a solid theoretical foundation for policy design and decision making of Macao’s tourism industry. Overall, this research objective is to help improve the quality of tourism and leisure in Macao.

To improve the economic cooperation between Macao and other Asian economies

Given that Macao is an open economy that involves interactions with the rest of Asia in various aspects, such as international trade, transportation, and financial services, it is also necessary to study economic relationships between Macao and other important Asian economies. In particular, the Macao Economy team expects to conduct research that highlights the impact of strengthening Macao’s cooperation and joint participation with the Asian economies in the Belt and Road Initiative. This research objective includes theoretical and quantitative analysis in (1) increasing the degree of market integration; (2) creating a globally competitive business environment, and (3) “joining hands to expand opening-up”.

Furthermore, this research theme contributes to the theoretical analysis in the joint development for the Guangdong-Hong Kong-Macao Cooperation, which aims to spearhead a comprehensive cooperation among Guangdong, Hong Kong and Macao and take forward the demonstrative functions of Hengqin for in-depth cooperation among Macao and other Asian economies.

To identify the effects of innovation in the development of Macao economy

To better facilitate the long-term development of Macao economy, the basic principle is to transform Macao and the conjunctive regions, such as the GBA and China Mainland, to modern economies that are driven by innovation and led by economic reform. Therefore, one research objective of the Macao Economy team is to study the implications of the innovation-driven development strategy and identify the effects of related policy regimes on various macroeconomic variables (i.e., economic growth, social welfare and income inequality). This research objective has important contributions for investigating the strategic positioning of Macao and the GBA in the “Outline Development Plan” in terms of developing into a globally influential international innovation and technology hub. With the aim of this research, it is expected to provide a clear picture that depicts the development of the “Guangzhou-Shenzhen-Hong Kong-Macao” innovation and technology corridor and a complete understanding of how the allocation of resources for innovation is optimized in benefiting different industries within Macao and the GBA.