ABSTRACT
In the past 50 years, Hong Kong’s economy has undergone two major transformations, first from entrepôt to manufacturing during the period from1951 to the late 1970s, and then from manufacturing to producer services since the late 1970s. In each case, the transformation was triggered by the change of Hong Kong’s relations with Mainland China. The former transformation was due to the sudden and dramatic decrease in China trade following the United Nations trade embargo; and the latter was a response to the open-door policy adopted in Mainland China since the late 1970s. In this chapter, we first give a brief review of Hong Kong’s transformation from entrepôt to manufacturing, and then offer an analysis of the recent transformation from manufacturing to producer services.
