Article: What Will Happen to Hong Kong?

Hong Kong has long been recognized as a prime example of the efficacy of the market. Although it became a leader in manufacturing by being a low-cost producer, its current competitive edge is its ability to quickly transform its economy from manufacturing to services without high unemployment and to rapidly get goods to world markets. Within the past two decades manufacturing has reduced its portion of the market labor from greater than 50 percent to 14 percent while the services sector labor shares climbed from 44 percent to 82 percent.2 Such agility has helped Hong Kong rapidly transition its metropolitan economy. The fact that its economy has weathered the Asian crisis as well as it has ...

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