The turning point of the Hong Kong manufacturing sector

Abstract

Relocation and cross-border operations of Hong Kong manufacturing since early 1980 have induced significant restructuring of the sector. This study investigates the issue in terms of industrial concentration and input-output relations. The findings of the study suggest that structural adjustment in manufacturing employment and production has occurred and that the year 1987 is probably the critical point that marks the beginning of this restructuring. Significantly different contributions attributable to labour and capital were observed. The study also suggests that the manufacturing sector in Hong Kong has become especially management oriented since 1987 in coordinating the division of labour between operations performed in the Pearl River delta and Hong Kong.

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