Factors behind economic growth in hong kong and singapore essay

In this case, increased saving rates are caused by increased growth rates, and not vice versa. For a city to go global, it has to outstrip the level of development of other cities in the nation and attain global significance.

While pre China had seen annual growth of 6 percent a year with some painful ups and downs along the waypost China saw average real growth of more than 9 percent a year with fewer and less painful ups and downs. The comparison of the investment rates of the four economies with the investment rates of other economies clearly rejects the view that investment rates were high in the Four Tigers in Advocates of this view see the success of East Asia as the natural outcome of these cautious policies.

In this case, the data will reveal a strong correlation between export performance and the rate of technological progress across industries.

The main reason for this sensitivity is the difficulty of estimating the rate of growth of capital stock in the East Asian countries during the period under study. As such, they offer an excellent jumping-off point for future research on the potential roles for productivity measures in other developing countries.

MNCs are well adept and survive well with the fast government structural programs and world business trades especially when it comes to products and services. The reforms also gave greater room for private ownership of production, and these privately held businesses created jobs, developed much-wanted consumer products, earned important hard currency through foreign trade, paid state taxes, and gave the national economy a flexibility and resiliency that it did not have before.

Main Arguments The view that investments and exports are engines of growth is based on one empirical and one theoretical argument. Once one accounts for the role of rapidly growing inputs in these countries' growth, one finds little left to explain.

Fourth, determining the correct direction of causality is tricky. It might be the other way around. Consequently interventions in these economies are widely studied. Success has a thousand fathers; failure is an orphan.

Although the Four Tigers accumulated capital and increased labor participation at a much faster rate than other economies, the increase in these two factors far from fully explains their exceptional growth rates; growth in productivity attributable to innovative technology also accounts for a significant fraction.

Inevitably, other important dimensions did not receive fair representation, such as theories about nonmonotonic dynamics of growth in which middle-income countries can take off and grow faster than either rich or poor countries and about the importance of the geographical concentration of growth successes why is East Asia the habitat of all Four Tigers?

Confusion is compounded when he discovers that ideological debate has multiplied even further the analyses of this phenomenon.

Factors behind Economic Growth in Hong Kong and Singapore Essay

Therefore, even if their so-called success can be replicated in other countries, it is probably not wise to do so. Second, in the period Chinese central planners invested heavily in the urban industrial sector and restricted migration from the country into the cities.

We know from the outset that the East Asian economies have been successful and that therefore government intervention did not inhibit growth. Oxford University Press, Even the World Bank report, after emphasizing the necessity of neoclassical "getting the basics right" policies in East Asia, concedes that these fundamental policies do not tell the entire story.

The analytical findings of this study were compared with those obtained by economists who had computed the data somewhat differently. Rodrikfor example, remarks that the East Asian model encompasses highly interventionist strategies Japan and Koreaas well as noninterventionist ones Hong Kong and Thailand ; explicitly redistributive policies Malaysiaas well as distributionally neutral ones most of the rest ; clientelism Indonesia and Thailandas well as strong, autonomous states Japan, Korea, Singapore ; emphasis on large conglomerates Koreaas well as on small, entrepreneurial firms Taiwan.

And more growth in capital than in labor ultimately leads to diminishing returns to capital, resulting in a fall in the growth of output even if capital continues to grow at a constant rate.

The raw material of the series is drawn mainly from IMF Working Papers, technical papers produced by Fund staff members and visiting scholars, as well as from policy-related research papers.

The labor participation rate can be increased for a while and will increase production, but obviously it cannot increase indefinitely everybody will ultimately be employed.Factors such as connectivity, proximity to China, low tax system, ease of Hong Kong company setup, and excellent infrastructure have made Hong Kong the centre of business activity in Asia (Ali, ).

Much of the global cities in the world had distinguishing history that makes them an. Economic factors like current and anticipated economic growth, interest rate, inflation, cost of labor, disposable income and distribution of income etc collectively comprise economic environment.

Current and projected economic conditions: In recent years Pakistan’s economic figures were indicating very impressive and promising consequences and. Such growth compares very favorably to that of the "Asian tigers"--Hong Kong, Korea, Singapore, and Taiwan Province of China--which, as a group, had an average growth rate of 7.

1. Latest Development.

Economic and Trade Information on Hong Kong

Hong Kong’s economy expanded by % year-on-year in real terms in the second quarter ofafter the growth of % in the preceding quarter, marking the seventh consecutive quarter of growth above the trend growth rate of % per annum in the past decade.

Hong Kong’s economic freedom score ismaking its economy the freest in the Index. Its overall score has increased by point, with improvements in government integrity, business. In the case of Hong Kong, Korea, and Taiwan Province of China, their growth rates of total factor productivity are as outstanding as their output growth rates.

Productivity growth in Singapore is less spectacular, but is still much above the world average.

Factors Behind the Economic Growth of Hong Kong and Singapore Essay Download
Factors behind economic growth in hong kong and singapore essay
Rated 4/5 based on 76 review