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Changing industrial structure and competitive patterns of manufacturing and non‐manufacturing in a small open economy: An entropy measurement
Author(s) -
Ng Linda FungYee
Publication year - 1995
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090160506
Subject(s) - open economy , small open economy , manufacturing , industrial organization , economics , manufacturing sector , entropy (arrow of time) , business , international economics , monetary economics , monetary policy , thermodynamics , exchange rate , marketing , physics
This paper studies the industrial concentration and competitive patterns of Hong Kong, a typical small open economy, via an entropy measurement. A relatively low degree of concentration was found to exist. Manufacturing showed decreasing concentration for 1976‐81 and increasing concentration after 1987. Non‐manufacturing had decreasing concentration since 1982. A structural change between the sectors had occurred. The size of the domestic market seemed unimportant in determining the level of concentration in a small open economy with free trade. The open‐door policy of the PRC which facilitated free resource mobility and outward investment between the two regions should be important to contribute such patterns.