Changing industrial structure and competitive patterns of manufacturing and non‐manufacturing in a small open economy: An entropy measurement

Abstract

This paper studies the industrial concentration and competitive patterns of Hong Kong, a typical small open economy, via an entropy measurement. A relatively low degree of concentration was found to exist. Manufacturing showed decreasing concentration for 1976‐81 and increasing concentration after 1987. Non‐manufacturing had decreasing concentration since 1982. A structural change between the sectors had occurred. The size of the domestic market seemed unimportant in determining the level of concentration in a small open economy with free trade. The open‐door policy of the PRC which facilitated free resource mobility and outward investment between the two regions should be important to contribute such patterns.

FDI and Industrial Restructuring in Post‐WTO Greater PRD: Implications on Regional Growth in China

“…3 The estimated values of FDI elasticity with respect to gravity (ρ g ) for SMEs in terms of firm number from the core and large joint ventures from non-core were −0.63 and −0.97, respectively (Tuan and Ng, 2002a). 4 The economic boundary of the 'mega-city' economy under the political arrangement of the 'One Country, Two System' was found roughly to coincide with the geographic boundary of the PRD region (Tuan, Ng and Wong, 1998) and with the main city core (Hong Kong) networked by satellite cores, if the FDI diffusion pattern and manufacturing relocation could serve as the effective indicators (Tuan and Ng, 2001b). being portrayed by the economic restructuring of the small-open economy Hong Kong from a manufacturing export-led to service-oriented economy with 1987 as the critical turning point had manifested the HK-PRD regional development via FDI diffusion (Ng, 1995). The industrial restructuring and adjustments in terms of employment and production input-output relations and the impacts on domestic productivity changes were also well appraised.…”

“…In this HK-PRD case where the agglomerative implications of a mega-city economy or core (Hong Kong)-periphery (PRD) system were elaborated and discussed, economic efficiency and growth can be achieved through the enlargement of production scale at both the micro (firm) and macro (economy) levels (Tuan and Ng, 1995a;andNg andTuan, 1997 and2000). The formation of such a mega-city economy, that is, Greater-PRD together with Hong Kong as its core, was materialised via regional economic integration and development by exploiting the comparative advantages of the HK-PRD metropolitan region (Tuan, Ng and Wong, 1998;and Tuan and Ng, 2001b) and the sharing of the agglomeration economies in both production and consumption within the HK-PRD economicintegrated entity (Tuan and Ng, 2001a).…”

“…Given such a CP relation exists between the core Hong Kong and peripheral PRD, the outward investment from the core to its periphery had restructured the © Blackwell Publishing Ltd 2004 Hong Kong macroeconomy to a service-orientated state with its critical turning point to happen in 1987 (Tuan and Ng, 1995b;and Ng, 1995). The evolution of such economic activities is further observed as a regional division of labour with the labour-intensive manufacturing processes being performed across Hong Kong's border in its peripheral (PRD) areas (Tuan and Ng, 2001b).…”

FDI Promotion Policy in China: Governance and Effectiveness

“…(HKEJ, 2000b). 11 Some of the effects of the official opening of the 'Large' PRD in 1987 for FDI promotion in Guangdong were examined (Tuan and Ng, 1995c;Ng, 1995;and Ng and Tuan, 1997b).…”

The Largest Trans-nationals of Developing Economies

“…Irrespective of how companies grow (internally, externally), there is a potential for concentration. As Ng (1995) has indicated, business concentration is a key element in comprehending the conduct, the structure, and the performance of business.…”