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Competitiveness and Specialisation

23.

the production equation.

But this is to emphasise the supply side of

Although the indications are that it will be feasible, as far as the supply of inputs is concerned, for Hong Kong at least to maintain and probably improve on its recent past performance in terms of real

output per capita, it needs to be borne in mind that,

at the end of the day, Hong Kong's growth will depend,

as it has always done, on export performance.

24. As I have already explained, Hong Kong's manufacturing industry has tended to concentrate on the production of a

rather narrow range of commodities; but it is part of

Hong Kong's strength that these have largely been finished

products demanded by some of the most sophisticated

consumer-oriented communities in the world. The skill

and resourcefulness of Hong Kong's businessmen have

enabled them to cultivate highly developed markets in

Europe and North America; and because of their

entrepreneurial skills and the fact that they have already firmly established themselves in these markets, they are now well-placed to benefit considerably from the increased rates of growth which these coun tries are likely to

experience in the years to come. And Hong Kong should

also benefit, in the decade ahead, from new initiatives

leading to increased trade liberalisation and specialisation

in production leading to a substantial increase in the

volume of international trade.

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