Factors behind Economic Growth in Hong Kong and Singapore Essay

There be many similarities between Hong Kong and Singapore. Both countries make merry high economic growth rates for the past three decades, they atomic number 18 known as East Asian Tigers because they make a renewal from poverty to Newly Industrialized Economies (NIEs) in a very compendious period of time. Both Hong Kong and Singapore were British colonies with both legal and administrative systems of their former colonial powers. They are the busiest ports in the world in price of throughputs.They have climbed the industrial ladder and are now important external financial centers because of their reliance on trade since 1960s (Kim. t al 1994). In addition both cities are densely populated since grease is scarce and bring in together with property prices is very high. These two cities are known for being fee traders with few restrictions on trade and great(p) flows which many a times are Gross Domestic crop (GDP). In Hong Kong the entered e order owns all the land where as in Singapore the state owns four fifths of the total land. Consequently both cities capture economic read primarily by nationalizing land and leasing it out.While the state owns much of the land in Singapore and the sole landowner in Hong Kong, the inefficiencies that could result from state ownership are taken care of through the creation of markets for state, land and property leases. Meanwhile the public leasehold system where the state is the major fictional character player in land use, planning and resource allocation flora very well in both cities since the public sector institutions of both are efficient and non-corrupt. These institutions in both countries benefit from adequate checks and balances, merit-based recruitment and pay scales which are high enough to reduce the temptation to corruption.In conclusion, there economies are widely believed to be the most economical absolve in the world are these economic freedom emanates from the governments hands-off insura nce policy which allows for flexibility and renovation of any given industry in a very short time. Both countries also have very exact available land and very few natural resources therefore importation most of their food and raw materials equally most of their exports consists of re-exports which are products made outside their territories.