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Competitiveness of the Hong Kong economy

Author

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  • Li, Hongyi
  • Wei, Xiangdong
  • Xie, Danyang

Abstract

Our assessment of the competitiveness of the Hong Kong economy from various perspectives indicates that the overall competitiveness of Hong Kong economy has been improving during the past several years. However, from a longer term historical perspective, there are still a number of areas in which Hong Kong’s competitiveness has been eroded relative to her main competitors in East Asia, especially in export sector. On the aggregate level, although Hong Kong’s Total Factor Productivity (TFP) growth rate is amongst the best performers in East Asia in the recent years, it has been adversely affected by the continuing relocation of Hong Kong’s manufacturing production to the Mainland China. On sectorial levels, although Hong Kong’s unit labour costs started to decline since 2000 comparing to her Asian competitors, the unit labour cost-based real effective exchange rate continues to appreciate against her major trade partners. Furthermore, Hong Kong’s competitiveness deteriorated in several important categories of goods and service exports. Overall, our study shows that the Hong Kong economy still maintains its resilience to outside shocks, nevertheless it needs to explore new areas to fuel its future growth.

Suggested Citation

  • Li, Hongyi & Wei, Xiangdong & Xie, Danyang, 2007. "Competitiveness of the Hong Kong economy," MPRA Paper 37345, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37345
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    References listed on IDEAS

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    Cited by:

    1. Chau-kiu Cheung & Joseph Cheng, 2016. "Resources and Norms as Conditions for Well-Being in Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(2), pages 757-775, March.
    2. Boon Lee, 2011. "Distribution Trade Sector Output and Productivity Performance: A Case Study of Singapore and Hong Kong 2001-2008," School of Economics and Finance Discussion Papers and Working Papers Series 270, School of Economics and Finance, Queensland University of Technology.

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    More about this item

    Keywords

    Competitiveness; Productivity; Unit labour cost; Dynamic shift shares;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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