Hong kongs economic restructuring

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Hong kongs economic restructuring

Early development[ edit ] to [ edit ] After the British acquisition of Hong Kong Island inthe manufacturing industry started to develop. Most factories were limited to small workshops producing hand-made goods. Primitive methods, techniques and facilities were used for production.

The productivity was low and the manufacturing industry was not as important as the re-exportation industry, which was the most important at the time. Such factories were the first Chinese-owned ones to appear in Hong Kong. The first printing company appeared infollowed by many different industries such as sweets[3] [4] clothing and soap-making.

Economic restructuring - Wikipedia

Although these firms were few in number, there was large investment into them and most were leaders in their respective industries.

Industries such as towelscigarettes and biscuits emerged to support the local population, resulting in a rise in the light industries. The textile industry became the backbone of Hong Kong's manufacturing sector.

Industries such as the firecrackerglass and leather industries also emerged, [6] and there was a shift from hand-made to machine-made products. There are several factors leading to the rise of manufacturing in the Hong kongs economic restructuring and 30s, including a decline in European industries, [5] the tax reduction granted by the Ottawa Agreement ofand the relocation of factories from Mainland China to Hong Kong.

After China regained the right to control its tariffs inthe tax imposed on Hong Kong goods rose tremendously, but the Chinese government rejected pleas from Hong Kong industrialists to lower tariffs.

Hong kongs economic restructuring

Japan's dumping policy also hit Hong Kong, which did not impose tariffs on exports. The consumption power of Mainland China decreased.

The largest industries at the time were shipbuilding, textile manufacturingtorches and plastic shoes. Among these industries, the largest was the shipbuilding industry. Like most other industries of the city, they faced a near-total destruction by the Japanese.

From toits earnings by re-exportation rose by over half every year. During this period, most factories that were shut down during the Japanese occupation period were reopened.

This forced Hong Kong to focus on manufacturing instead. After the Second Sino-Japanese WarChinese capitalists bought huge numbers of machines and facilities to restore their pre-war production. As the Civil War broke out, many capitalists moved those facilities to Hong Kong warehouses to continue production.

They brought skilled labour, technology and capital to the city. After the war, the facilities and equipment stayed in Hong Kong, causing the rise of Hong Kong's manufacturing industry.

After the Second World War, richer capitalist countries started to upgrade their products and technology, leaving labour-intensive industries to the less developed countries. This encouraged overseas investments and allowed developed technology to be imported to Hong Kong, thereby boosting Hong Kong's manufacturing industry.

The number of factories increased from towhile the number of workers employed in the manufacturing sector rose from 85, to 98, Nevertheless, the total value of domestic exports dropped from 29, to 24, Hong Kong dollars.

This was because the manufacturers focused on building factories and altering their products rather than increasing their productivity.

Signals of a slowdown

The number of factories increased by 1. However, the value of domestic exports decreased from to Infor the first time, the value of re-exports exceeded that of exports.

Bythe value of re-exports had shrunk again to a third of that of exports. By the early s, Hong Kong's textile manufacturing industry was the most successful in Asia. Chinese textile manufacturers set up many factories in Tsuen Wan. Pre-existing industries continued to prosper, while new industries emerged and blossomed as well.

The number of factories increased 1. The number of factories and workers in were 16, andrespectively.Manufacturing in Hong Kong consists of mainly light and labour-intensive industries.

Hong kongs economic restructuring

The economic restructuring of more developed countries was another factor. After the Second World War, richer capitalist countries started to upgrade their products and technology, leaving labour-intensive industries to the less developed countries. Economic restructuring allows markets to expand in size and capacity from regional to national to international scopes.

Altogether, these institutional arrangements buttressed by improved technology reflect the interconnectedness and internationalization of firms and economic processes.

Catherine R. Schenk, University of Glasgow

Hong Kong’s industry was founded in the textile sector in the s before gradually diversifying in the s to clothing, electronics, plastics and other labor-intensive production mainly for export.

The economic development of Hong Kong is unusual in a variety of respects. Economic History of Hong Kong. Catherine R. Schenk, University of Glasgow. Hong Kong’s economic and political history has been primarily determined by its geographical location.

Hong Kong is the world’s most services-oriented economy. There are very few price controls, but the government funds some subsidies and regulates residential rents and prices for.

Hong Kong underwent two economic restructurings after the Second World War.

Project MUSE - Economic Growth and Income Inequality in Hong Kong: Trends and Explanations Instead, the over-budget and behind-schedule project has turned into a symbol of the deteriorating political and economic relationship between Beijing and Hong Kong.
Manufacturing in Hong Kong - Wikipedia Send email to admin eh.
28 Nov 2018 Demographic impact[ edit ] As cities experience a loss of manufacturing jobs and growth of services, sociologist Saskia Sassen affirms that a widening of the social hierarchy occurs where high-level, high-income, salaried professional jobs expands in the service industries alongside a greater incidence of low-wage, low-skilled jobs, usually filled by immigrants and minorities. One other qualitative dimension involves the feminization of the job supply as more and more women enter the labor force usually in the service sector.

It transformed from an entrepot to an industrial city in the s and an international financial centre in the s. It transformed from an entrepot to an industrial city in the s and an international financial centre in the s.

Economic History of Hong Kong