The Hong Kong Advantage

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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
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