With its rapidly approaching transition from British to Communist Chinese rule, the "future of Hong Kong" has been a frequent story for news reporters in both the East and the West. But the July 1st transfer of power has been seen mostly as a political event, with virtually no analysis of the economic future of one of the world's most important business centers. Now, in The Hong Kong Advantage , readers have the conclusions of a year-long study of the competitiveness of Hong Kong, in a volume that sheds light on both the colony's profitable past and its prospects in coming years.
Enright, Scott, and Dodwell highlight a number of reasons for the colony's prosperity--its unique intermingling of thousands of local and overseas firms; the hands-off policy of the colonial government; a singular blend of firms with steady cash flow (transportation, property, or utilities) and firms relying on flexibility, rapid response, and competitive pricing (clothing, toys, electronics); and its central location in the most dynamic economic region in the world. But the greatest reason for its success has been its metamorphosis into an information and knowledge-based economy, acting in particular as a metropolitan center for mainland China, combining the land, labor, and resources of the interior with the design, marketing, and logistics skills found in Hong Kong.
The authors contend that this engine of prosperity should continue--and indeed grow stronger--after the transfer of power. Hong Kong's most pressing challenges, the book concludes, are problems generated by its own success, such as its high-cost economy (with rising rents, wages, and compensation packages) and the growing need for more highly skilled workers. If its business leaders can cope with these problems, the authors conclude, Hong Kong's economic future should be as successful as its past.
The Hong Kong Advantage is a book that everyone concerned about Hong Kong's economic future--and indeed the economic future of Asia and the world--will want to read.
The research project on which this book is based began in
the fall of 1995 when members of Hong Kong's business
community approached us to help them achieve a deeper
understanding of Hong Kong's economic system as well as
the sources of competitive advantage and disadvantage that
underlie and influence the performance of Hong Kong's
industries in international markets. Their concern had been
that with all the discussion of the politics of the transition from
British to Chinese administration to occur on 1 July 1997,
relatively little attention had been paid to the underlying
competitiveness of the Hong Kong economy and its prospects
through the transition. Since Hong Kong's economic future
depends on the competitiveness of its industries and activities,
they felt they needed such an analysis for their own planning
purposes.
The Hong Kong Advantage project was carried out under the
auspices of the Vision 2047 Foundation ('Vision 2047'), a
nonprofit, nonpartisan, private organization consisting of
forty volunteer members dedicated to promoting a better
understanding of Hong Kong.
Author(s): Michael Enright & Edith Scott & David Dodwell
Edition: First
Publisher: Oxford University Press
Year: 1997
Language: English
Commentary: Deskewed, OCR (Clearscan) , Bookmarked,
Pages: 369
City: Hong Kong
Tags: Business & Economics, Economic Conditions,
Front Cover
Half Title Page
Full Title Page
ISBN 0-19-590322-6
ACKNOWLEDGEMENTS
PREFACE
CONTENTS
LIST OF TABLES
CHAPTER TABLES
APPENDIX TABLES
LIST OF FIGURES
1 INTRODUCTION
HONG KONG'S HISTORY
HONG KONG'S ECONOMY
Table 1.1 GDP per capita (Purchasing-power-parity Basis), Selected Economies
Table 1.2 Hong Kong's Leading Trade Partners
Table 1.3 Outbound Foreign Direct Investment
HONG KONG'S TRANSNATIONAL FIRMS
Table 1.4 Distribution of Gross Domestic Product, Hong Kong
Table 1.5 Hong Kong's Leading Service Industries
Table 1.6 Compound Annual Growth in Services, 1983-1993, Selected Economies
Table 1.7 Hong Kong's Leading Manufacturing Industries
Figure 1.1 Manufacturing Location of Exports of Hong Kong Firms
Figure 1.2 Future Location of Activities, Hong Kong Manufacturing and Trading Firms
Table 1.8 Distribution of Gross Domestic Product, Selected Countries
Figure 1.3 Manufacturing Per Cent of Employment, Selected Cities, 1980-1981
Figure 1.4 Manufacturing Per Cent of Employment, Selected Cities, 1992-1995
HONG KONG IN PERSPECTIVE
NOTES
2 HONG KONG'S UNIQUE COMBINATIONS
GOVERNMENT AND BUSINESS
LOCAL AND OVERSEAS FIRMS
Table 2.1 Top Twenty Hong Kong Companies by Sales, 1995
Table 2.2 The Twenty Largest Companies on the Hong Kong Stock Exchange by Market Capitalization
ENTREPRENEURIAL AND MANAGERIAL FIRMS
HUSTLE AND COMMITMENT STRATEGIES
Figure 2.1 Hong Kong's Unique Combinations
NOTES
3 HONG KONG'S ROLES IN THE WORLD ECONOMY
HONG KONG AS PACKAGER AND INTEGRATOR
HONG KONG AS FOREIGN INVESTOR
Table 3.1 Leading Foreign Investors in to ASEAN and APEC, 1994
HONG KONG AS A LOCATION FOR OVERSEAS FlRMS
HONG KONG AS THE CAPITAL OF THE OVERSEAS CHINESE
Table 3.2 Per Cent of Stock Market Capitalization Control led by Ethnic Chinese, Selected Countries
HONG KONG AS A DRIVER OF THE MODERNIZATION AND INTERNATIONALIZATION OF THE MAINLAND CHINESE ECONOMY
Table 3.3 Mainland China, Gross Industrial Output and Employment by Type of Ownership
Table 3.4 Top Five Foreign Investors in Mainland China
Table 3.5 Top Foreign Investors in Selected Mainland Chinese Provinces
THE CHINESE MAINLAND AS A DRIVER OF THE HONG KONG ECONOMY
HONG KONG'S ROLES
NOTES
4 ELEMENTS OF THE HONG KONG ECONOMIC SYSTEM
INPUTS TO INDUSTRY
Location and Geography
Figure 4.1 Hong Kong's Location
Infrastructure
Table 4.1 Top Ten Economies by Minutes of Outgoing International Telephone Traffic, 1995
Capital and Finance
Capital Goods and Components
HONG KONG'S CLUSTERS
Property, Construction, and Infrastructure Cluster
Figure 4.2 Hong Kong's Infrastructure and Real Estate Cluster
Business and Financial Services Cluster
Figure 4.3 Hong Kong's Business Services Cluster
Transport and Logistics Cluster
Figure 4.4 Hong Kong's Transport Cluster
Light Manufacturing and Trading Cluster
Figure 4.5 Hong Kong's Light Manufacturing and Trading Cluster
Tourism Cluster
Figure 4.6 Hong Kong's Tourism Cluster
Links among Hong Kong's Clusters
Figure 4.7 Links Between Hong Kong's Clusters
HONG KONG'S LEGAL INSTITUTIONS
HONG KONG'S PEOPLE
THE ECONOMIC SYSTEM IN PERSPECTIVE
NOTES
5 THE COMPETITIVENESS OF HONG KONG INDUSTRIES
METHODOLOGY
Figure 5.1 Drivers of Competitiveness at the Industry Level
THE HONG KONG SEA CARGO INDUSTRY
The Industry
Advantageous Natural and Created Inputs
Burgeoning Demand for Port Services
A Vibrant Cluster
Private Sector Strategies
Limited Competition and Cooperation
Government as Referee
Sea Cargo in Perspective
Figure 5.2 Hong Kong's Sea Cargo Industry
THE HONG KONG GARMENT INDUSTRY
Flexible Organizations and Strategies
Advantages in Light Manufacturing and Trading
Input Challenges
Competition Influenced by Quotas
Emphasis on Foreign Demand
Business-Friendly Institutions
The Garment Industry in Perspective
Figure 5.3 Hong Kong's Garment Industry
THE HONG KONG EXPORT TRADING SECTOR
The Industry
Dispersed Operations and Rapid Response Strategies
Advantages in Contacts and Capabilities
Cluster Advantages
Indirect Competition
Institutional Strengths and Entrepreneurial Agendas
Export Trading in Perspective
Figure 5.4 Hong Kong's Export Trading Sector
THE HONG KONG FUND MANAGEMENT INDUSTRY
The Industry
Overseas and Local Firms
Small, but Growing Local Demand
Highly Skilled and High-Cost Inputs
Part of a Dynamic Business Services Cluster
Important Institutional Benefits
Active Competition Among Local Managers
Fund Management in Perspective
Figure 5.5 Hong Kong's Fund Management Industry
ADDITIONAL INDUSTRIES
The Hong Kong Air Cargo Industry
The Hong Kong Electronics Industry
The Hong Kong Civil and Construction Engineering Industry
The Hong Kong Telecommunications Industry
The Hong Kong Tourism Industry
HONG KONG'S INDUSTRIES
Figure 5.6 Activities Performed by Hong Kong Firms
Figure 5.7 Sources of Advantage in Hong Kong Industry
THE INDUSTRIES IN PERSPECTIVE
NOTES
6 OPPORTUNITIES FOR HONG KONG
OPPORTUNITIES ON THE CHINESE MAIN LAND
Table 6.1 Cumulative Inbound Foreign Investment, Selected Nations, 1989-1995
OPPORTUNITIES IN ASIA
Table 6.2 Economic Data, Selected Asian Economies
Table 6.3 Foreign Investment Inflows, Selected Host Economies, 1984-1995
Figure 6.1 Growth in Trade, 1984-1994, 1990-1994
OPPORTUNITIES DRIVEN BY LOCAL DEMAND
SPECIFIC SECTORAL OPPORTUNITI ES
OPPORTUNITIES ARISING OUT OF THE INTERNATIONALIZATION OF SERVICES
Table 6.4 International Student Enrollment Projections by Source Region, 2000-2025
EXPANDING STRATEGIC CHOICES FOR FIRMS
THE OPPORTUNITIES
NOTES
7 HONG KONG'S ECONOMIC CHALLENGES
COST PRESSURES
Table 7.1 Inflation and Exchange Rates, Selected Economies
Table 7.2 Real Wage and Productivity Growth, Hong Kong, 1983-1993
CHALLENGES OF WORK-FORCE DEVELOPMENT
Table 7.3 GDP by Principal Language, Selected Languages, 1994
EMPLOYMENT CHALLENGES
CHALLENGES FOR THE NON-TRADED SECTOR
VIABILITY OF PAST STRATEGIES
TECHNOLOGY DEVELOPMENT AND UTILIZATION
CHALLENGES FOR ATTRACTING AND RETAINING OVERSEAS FIRMS
ENVIRONMENTAL CHALLENGES
CHALLENGES OF ECONOMIC INTERACTION WITH THE MAINLAND
Figure 7.1 China GDP Growth and Inflation, 1979-1995
SUSTAINABILITY OF GOVERNMENT POLICY
CHALLENGES TO SPECIFIC HONG KONG INDUSTRIES
CHALLENGES TO HONG KONG'S FUTURE COMPETITIVENESS
NOTES
8 THE COMPETITION
Table 8.1 Selected Indicators: Hong Kong and Regional Competitors, 1995
SINGAPORE
Singapore in Perspective
Singapore and Hong Kong
TAIWAN / TAIPEI
Taiwan in Perspective
Taiwan and Hong Kong
SHANGHAI
Shanghai in Perspective
Shanghai and Hong Kong
SYDNEY / NEW SOUTH WALES
Sydney in Perspective
Sydney and Hong Kong
HONG KONG'S COMPETITION
NOTES
9 1997 AND HONG KONG'S UNCERTAINTIES
HONG KONG'S CONCERNS
CONCERNS IN CONTEXT
SCENARIOS FOR HONG KONG'S ECONOMIC FUTURE
Hong Kong as Hong Kong
Hong Kong as Shanghai
Hong Kong as Singapore
Hong Kong as London and Tokyo
SCENARIOS AND ECONOMIC GROWTH
BEYOND SCENARIOS
MANAGING THE RELATIONSHIP WITH THE MAINLAND
MANAGING HONG KONG'S RELATIONS WITH THE REST OF THE WORLD
MANAGING HONG KONG'S INTERNAL ADMINISTRATION
MANAGING EXPECTATIONS
OTHER IMPORTANT UNCERTAINTIES
NOTES
10 GOING FORWARD
ROBUSTNESS OF THE HONG KONG ECONOMY
HONG KONG'S ROBUSTNESS IN PERSPECTIVE
Figure 10.1 Position, Prospects, and Robustness of Hong Kong Industries
THE HONG KONG STORY
INTO THE FUTURE
NOTES
APPENDIX COST CHALLENGES
COST PRESSURES
RISING COSTS - A REGIONAL PROBLEM
OFFICE RENTALS
Table A.1 Office Rental Costs, Average of Forecasted Highs and Lows for June 1997, Selected Cities
REMUNERATION PACKAGES
Table A.2 Employment Costs, Expatriate Regional Manager, Thousands of U S Dollars, Selected Cities, 1996
Table A.3 Employment Costs, Local Staff, Thousands of U S Dollars, Selected Cities, 1996
AUTOMOBILES
TELECOMMUNICATIONS
Table A.4 Telecommunications Costs, U S Dollars, Selected Cities, 1996
AIR TRAVEL
CORPORATE TAXATION
Table A.5 Aviation Costs, U S Dollars, May 1996, Selected Cities
Table A.6 Corporate Taxation, Selected Cities, 1996
COST COMPARISONS - THE CONCLUSIONS
BIBLIOGRAPHY
INDEX
Back Cover
