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, 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.
| Original language | English |
|---|---|
| Pages (from-to) | 573-586 |
| Number of pages | 14 |
| Journal | China Economic Review |
| Volume | 20 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1 Sept 2009 |
Bibliographical note
We would like to thank an anonymous referee, K C Chan, Chang Shu, and Wensheng Peng for their helpful comments and suggestions. We would also like to thank Marco Lau and Liang Huang for their excellent research assistance.Funding
Financial support from the Bauhinia Foundation Research Centre is greatly appreciated. The views expressed in this paper are those of the authors and do not necessarily represent those of the Bauhinia Foundation Research Centre.
Keywords
- Competitiveness
- Dynamic shift shares
- Productivity
- Unit labour cost