The Hong Kong model of industrialization

Abstract

Hong Kong is an interesting case study of economic development for two reasons: (1) the Colony is one of the few successful cases of industrialization and economic development among contemporary less developed countries; and (2) it closely resembles and is in fact a last remnant of the laissez-faire economy. This paper describes the pattern of industrialization in Hong Kong and its economic rationale in terms of the theory of international comparative advantage. The special features of industrialization in the Colony, taken together, constitute what is called the "Hong Kong Model of Industrialization." The "model" is found to be a pure case of industrialization through exploitation of comparative advantage. --