Hong Kong Economic Growth Case Study

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Economic growth relates to the increased output within an economy. It can come from rural to industrial shifts, invention, innovation and technological progress; it requires savings and investment, along with a well-implemented policy framework and can be measured through the economies GDP. Haggard, (2004) suggested economic growth can result from productive inputs, capital and labour or from greater efficiency in their use. It can lead to economic development, which Michael Todaro (2011) suggested to be a multi-faced process that involves the reorganization and reorientation of entire economic and social systems, involving radical changes to social structure, institutions, and cultural beliefs and norms. Throughout the 1950’s and 1960’s …show more content…
Occasionally, the oil shocks of the mid- and late 1970’s did lead to sharp inflationary outbursts, but these were then quickly reined in (with only Korea standing out as a partial exception in the later 1970s. Boltho, A and Weber, M (2009). In addition, the HPAE’s never had to rely on the inflation tax because their deficits were within financial limits and commitments to fixed exchange rates helped lower inflation. However, Hong Kong abandoned this mechanism. Others self- imposed constraints on fiscal policies and borrowing with a number of institutional checks in place to monitor fiscal discipline, altering public spending and foreign borrowing; something Thailand has continuously struggled with. Warr and Nadhiprabha …show more content…
Over 30 years or more, both have dramatically improved education and training systems. This was largely led by primary and secondary education reforms as opposed to higher education. Coulombe and Tremblay’s (2006) research supports this view by arguing that for a nation to develop it is more important to increase the average literacy skills, rather than increasing the percentage of individuals that achieve high levels of literacy skills.
The HPAE’s recognized the importance of the need for a skilled workforce and the majority of public spending was directed towards technology and science, with the vision to create a highly skilled workforce with the skills necessary to expand the

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