Competitiveness concerns in Hong Kong: business fears and government incomprehension

Author: Thompson E.R.

Source: The Pacific Review, Volume 15, Number 3, 1 August 2002 , pp. 443-467(25)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

International indices of competitiveness have seen Hong Kong downgraded from its former position as possibly the world's most competitive business environment. Such indices have cited government actions as a prime cause of Hong Kong's competitiveness decline. Hong Kong's government, however, has dismissed such a conclusion as subjective and incorrect, thereby raising fears that it may not fully understand the nature of the problem and will therefore be unlikely to seek to effect any solution. Using quantitative data from 130 foreign and local firms operating in the city and from 98 LEGCO members and senior Hong Kong government officials, this research objectively examines the extent to which firms and government officials respectively (i) consider that Hong Kong's international competitiveness has diminished, and (ii) ascribe any such decline to government or other factors. Results show that firms do indeed consider Hong Kong's international competitiveness to have declined, whereas government officials do not. Moreover, government officials are found to consider that if there is any decline it can significantly be ascribed to cost and regional competition factors, whereas firms significantly ascribe competitiveness decline exclusively to government rather than to cost or competition factors.

Keywords: NATIONAL COMPETITIVENESS; HONG KONG; FIRMS; GOVERNMENT

Language: English

Document Type: Research article

Publication date: 2002-08-01

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