Economic Policy

Wilson Wong and Raymond Yuen

in Contemporary Hong Kong Government and Politics

Published by Hong Kong University Press

Published in print August 2012 | ISBN: 9789888139477
Published online January 2013 | e-ISBN: 9789882208681 | DOI:
Economic Policy

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This chapter examines two aspects of economic policy: fiscal policy and industrial policy. The findings reject the “market economy” image of Hong Kong, and show that political considerations often override economic logic in shaping economic policy. In Hong Kong, economic ideology is frequently used as a tool to legitimate political choices about the economy, which are often biased towards the benefit of more privileged groups. The best example of how power distribution shapes resource allocation is the fiscal system, under which the politically powerful are often taxed less but benefit more. The political system dominated by the rich and powerful also deprives the government of sufficient state capacity and state autonomy for carrying out effective industrial policies to transform and restructure the economy.

Keywords: Hong Kong; Government; Politics; Special Administrative Region; Economic policy; Fiscal policy; Taxation

Chapter.  9806 words.  Illustrated.

Subjects: Society and Culture

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