{
  "title": "Domestic Competition, Cyclical Fluctuations, and Long-Run Growth in Hong Kong Sar",
  "publication": "IMF Working Papers, August 1, 2000",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/domestic-competition-cyclical-fluctuations-and-long-run-growth-in-hong-kong-sar-3723",
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  "summary": "This paper provides an empirical assessment of the degree of competition in Hong Kong SAR using industry-level data. Although due to data limitations only approximate measures of competitiveness can be estimated, the results do suggest that Hong Kong SAR is as competitive as a typical OECD economy.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- This paper provides an empirical assessment of the degree of competition in Hong Kong SAR using industry-level data.\n- Due to data limitations only approximate measures of competitiveness can be estimated.\n- The results suggest that Hong Kong SAR is as competitive as a typical OECD economy.\n- The dramatic shift of the economy toward services over the last decade has made Hong Kong SAR slightly less competitive on average.\n- Imperfect competition is not leading to counter-cyclical markups and slower price adjustment as some theories predict; instead, markups are more pro-cyclical than in OECD countries.\n- Markups are sufficiently imperfectly competitive in both Hong Kong SAR and the OECD to significantly downwardly bias growth accounting estimates of total factor productivity in Asian NICs vis-à-vis OECD countries."
    },
    {
      "heading": "Key findings (empirical)",
      "content": "- Hong Kong SAR competitiveness is comparable to a typical OECD economy.\n- Shift toward services over the last decade has slightly reduced average competitiveness in Hong Kong SAR.\n- Markups in Hong Kong SAR are more pro-cyclical than in OECD countries.\n- Imperfect competition causes a significant downward bias in growth accounting estimates of total factor productivity when comparing Asian NICs with OECD countries."
    },
    {
      "heading": "Methodology and limitations",
      "content": "- Industry-level data are used to estimate the degree of competition.\n- Data limitations restrict the analysis to approximate measures of competitiveness."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Competition, Economic sectors, Financial markets, Labor, Labor share, Manufacturing, Production, Total factor productivity\n- Keywords: AC ratio, Competition, competitiveness, cyclical fluctuations, growth, Hong Kong SAR, imperfect competition, Labor share, Manufacturing, Markups, P-AC margin, P-MC, P-MC margin, Sar, SAR-OECD sample, Total factor productivity, WP\n\nSource: IMF Working Papers (Working Paper No. 2000/142) — Eric Zitzewitz, August 1, 2000.\n\n---\n\n Content in this bundle\n\n- Domestic Competition, Cyclical Fluctuations, and Long-Run Growth in Hong Kong SAR-WP/00142\n  - Domestic Competition, Cyclical Fluctuations, and Long-Run Growth in Hong Kong SAR-WP/00142 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Domestic Competition, Cyclical Fluctuations, and Long-Run Growth in Hong Kong SAR-WP/00142 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/domestic-competition-cyclical-fluctuations-and-long-run-growth-in-hong-kong-sar-3723"
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    "Authors: Eric Zitzewitz",
    "Published: August 1, 2000",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451856248.001",
    "This paper provides an empirical assessment of the degree of competition in Hong Kong SAR using industry-level data.",
    "Due to data limitations only approximate measures of competitiveness can be estimated.",
    "The results suggest that Hong Kong SAR is as competitive as a typical OECD economy.",
    "The dramatic shift of the economy toward services over the last decade has made Hong Kong SAR slightly less competitive on average.",
    "Imperfect competition is not leading to counter-cyclical markups and slower price adjustment as some theories predict; instead, markups are more pro-cyclical than in OECD countries.",
    "Markups are sufficiently imperfectly competitive in both Hong Kong SAR and the OECD to significantly downwardly bias growth accounting estimates of total factor productivity in Asian NICs vis-à-vis OECD countries.",
    "Hong Kong SAR competitiveness is comparable to a typical OECD economy.",
    "Shift toward services over the last decade has slightly reduced average competitiveness in Hong Kong SAR.",
    "Markups in Hong Kong SAR are more pro-cyclical than in OECD countries.",
    "Imperfect competition causes a significant downward bias in growth accounting estimates of total factor productivity when comparing Asian NICs with OECD countries.",
    "Industry-level data are used to estimate the degree of competition.",
    "Data limitations restrict the analysis to approximate measures of competitiveness.",
    "Subject: Competition, Economic sectors, Financial markets, Labor, Labor share, Manufacturing, Production, Total factor productivity",
    "Keywords: AC ratio, Competition, competitiveness, cyclical fluctuations, growth, Hong Kong SAR, imperfect competition, Labor share, Manufacturing, Markups, P-AC margin, P-MC, P-MC margin, Sar, SAR-OECD sample, Total factor productivity, WP",
    "**Domestic Competition, Cyclical Fluctuations, and Long-Run Growth in Hong Kong SAR-WP/00142**"
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