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Has the Hong Kong Model Worked? Industrial Policy in Retrospect and Prospect

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  • Lai Si Tsui‐Auch

Abstract

This article attempts to blend the insights of development economics and political economy in order to analyse industrial policy in Hong Kong. It describes the lack of industrial upgrading, the process of de‐industrialization, and the over‐reliance on the service sector, and examines the political economy of the functional industrial policy practised in Hong Kong, as well as its limitation. The author suggests that the political change from a colony to a special administrative region of China provides a context for Hong Kong State to undertake a more interventionist, industry‐specific policy, the success of which will depend on a combination of two factors: state autonomy against the excessive influence of Beijing, and state capacity to guard against corruption and to enhance a mutually‐beneficial regional co‐operation in the South China region.

Suggested Citation

  • Lai Si Tsui‐Auch, 1998. "Has the Hong Kong Model Worked? Industrial Policy in Retrospect and Prospect," Development and Change, International Institute of Social Studies, vol. 29(1), pages 55-79, January.
    • Handle: RePEc:bla:devchg:v:29:y:1998:i:1:p:55-79
    DOI: 10.1111/1467-7660.00070
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