Economic development and structural setting : Hong Kong electronics industry

Richard Cheung LAM, Hong Kin KWOK

Research output: Journal PublicationsJournal Article (refereed)

3 Citations (Scopus)

Abstract

A structural analysis of the economic development in developing economies is proposed. A development model is constructed and examined against the experience of the Hong Kong electronics industry. The proposed model indicated that the local structural settings of developing economies did not foster a high profit incentive and investment environment for rapid economic development. However, the same settings when integrated into an international structural context can generate a structural profit that is based on the difference in the cost of production. This structural profit can act as an engine of growth for the whole economy. The application of the model has shown that the calculation of the structural profit is not simply based on certain factors of production but on the overall cost of production. In addition, the application also indicated that three main aspects of the structural settings have played the determining role in shaping the development of the industry, namely, the export network, risk and uncertainty in the local structural settings and peripheral industries.
Original languageEnglish
Pages (from-to)466-490
Number of pages25
JournalJournal of Contemporary Asia
Volume31
Issue number4
DOIs
Publication statusPublished - 1 Jan 2001

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electronics industry
Hong Kong
profit
economy
economics
industry
structural analysis
development model
costs
incentive
uncertainty
experience

Cite this

LAM, Richard Cheung ; KWOK, Hong Kin. / Economic development and structural setting : Hong Kong electronics industry. In: Journal of Contemporary Asia. 2001 ; Vol. 31, No. 4. pp. 466-490.
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Economic development and structural setting : Hong Kong electronics industry. / LAM, Richard Cheung; KWOK, Hong Kin.

In: Journal of Contemporary Asia, Vol. 31, No. 4, 01.01.2001, p. 466-490.

Research output: Journal PublicationsJournal Article (refereed)

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AB - A structural analysis of the economic development in developing economies is proposed. A development model is constructed and examined against the experience of the Hong Kong electronics industry. The proposed model indicated that the local structural settings of developing economies did not foster a high profit incentive and investment environment for rapid economic development. However, the same settings when integrated into an international structural context can generate a structural profit that is based on the difference in the cost of production. This structural profit can act as an engine of growth for the whole economy. The application of the model has shown that the calculation of the structural profit is not simply based on certain factors of production but on the overall cost of production. In addition, the application also indicated that three main aspects of the structural settings have played the determining role in shaping the development of the industry, namely, the export network, risk and uncertainty in the local structural settings and peripheral industries.

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