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Output and Productivity Performance of Hong Kong and Singapore's Transport and Communications Sector, 1990 to 2005

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  • Boon L. Lee
  • William Shepherd

Abstract

This paper uses the industry of origin approach to analyze value added and labor productivity outcomes arising from progressive liberalization of government and from statutory board control of transport and communications in Singapore. The paper compares these outcomes with those from the market-orientated, more privatized transport and communications sector in Hong Kong, for the benchmark year 2004 and a review period from 1990 to 2005. The study is among the first to carefully compare labor productivity in specific sectors between the two countries. Although Singapore generally recorded higher levels of labor productivity, there was some catch-up by Hong Kong in the later part of the review period. There was also substantial variation in labor productivity performance within sectoral branches in the two sectors. The study suggests there is some evidence that the different political-economic structures and policy approaches to deregulation and liberalization played a role in determining productivity performance in the transport and communications sectors in Singapore and Hong Kong. The analysis infers a potential, increasing focus on privatization as the driving force for further liberalization of the transport and communications sector in Singapore. Copyright 2009 The Authors. Journal compilation 2009 East Asian Economic Association and Blackwell Publishing Ltd.

Suggested Citation

  • Boon L. Lee & William Shepherd, 2009. "Output and Productivity Performance of Hong Kong and Singapore's Transport and Communications Sector, 1990 to 2005," Asian Economic Journal, East Asian Economic Association, vol. 23(1), pages 65-91, March.
  • Handle: RePEc:bla:asiaec:v:23:y:2009:i:1:p:65-91
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    References listed on IDEAS

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    1. Mulder, N., 1994. "Transport and Communication in Mexico and the United States: Value Added , Purchasing Power Parities and Productivity," Papers 579, Groningen State, Institute of Economic Research-.
    2. Kim-Song Tan & Sock-Yong Phang, 2004. "From Efficiency-driven to Innovation-driven Economic Growth: Perspectives from Singapore," Working Papers 15-2004, Singapore Management University, School of Economics.
    3. Lu, Ding & Yu, Qiao, 1999. "Hong Kong's exchange rate regime:: Lessons from Singapore," China Economic Review, Elsevier, vol. 10(2), pages 122-140.
    4. Hill, T P, 1977. "On Goods and Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 315-338, December.
    5. Soi Lam & Trinh Toan, 2006. "Land Transport Policy and Public Transport in Singapore," Transportation, Springer, vol. 33(2), pages 171-188, March.
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    More about this item

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D29 - Microeconomics - - Production and Organizations - - - Other
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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