This Course Guide has been taken from the most recent presentation of the course. It would be useful for reference purposes but please note that there may be updates for the following presentation.
ECON A203
Hong Kong Economy
Welcome to ECON A203 Hong Kong Economy.
This is a one-year, ten-credit, middle-level course for HKMU students seeking a Bachelor of Social Sciences in Economics degree or a Bachelor of Social Sciences with Honours in Economics degree.
The course first introduces the Hong Kong economy from a historical perspective that describes the important landmarks of Hong Kong's economic development. It then examines the major sectors in the economy, including industrial, financial, real estate, public utilities, and foreign trade. Later units analyse the issues of labour market and public finance. The course concludes with a discussion of the problems and prospects of the Hong Kong economy.
The nine study units, readings, activities and self-tests will help you understand the topics over a period of around 36 weeks.
Purpose of this Course Guide
You have probably taken other courses through Hong Kong Metropolitan University, so you should now be well aware of both the study skills required for distance learning and how HKMU courses are organized. It is still recommended, though, that you read this Course Guide thoroughly before looking at the study units and the readings.
The Course Guide tells you briefly what the course is about and how you can work your way through the material. It suggests the amount of time you are likely to need to spend in order to complete the course and gives you a general idea when your assignments are due. For detailed information on assignments, however, please refer to the Assignment File. For information on due dates and cut-off times for work to be submitted, please refer to the Presentation Schedule.
In distance learning as practised by Hong Kong Metropolitan University, the study units are coordinated and prepared in the distance mode of education. You do not need to attend lectures face-to-face. This is one of the great advantages of distance learning: you can read and work through specially designed study material at your own pace, at times and places that suit you best. Think of it as reading the lecture instead of hearing it from a lecturer. In the same way that a lecturer might set you some reading to do, the study unit tells you when to read your textbook or other material. In the same way that a lecturer might give you an in-class exercise, your study unit has exercises (i.e. self-tests and activities) for you to do at appropriate points. Do them all, as the exercises and questions give you the practice necessary to achieve the learning outcomes of the course and to pass the examination. Even when you 'make notes' in a direct face-to-face lecture, you are advised to study those notes, and to read and think about them in relation to your textbook. In the distance mode of education, the course materials replace the live lecture notes.
Course aims
This course aims to provide students with a comprehensive understanding of the operation of the Hong Kong economy, with particular emphasis on the salient factors affecting its performance.
Course learning outcomes
On completion of ECON A203, you should be able to:
A brief version of the course is shown below:
| Unit | Title | Weeks | Assessment activity (end of unit) |
| 1 | An overview of the Hong Kong economy | 3 | |
| 2 | Development and structural change | 4 | Assignment 1 |
| 3 | Banking and financial systems in Hong Kong | 4 | |
| 4 | The housing market | 4 | Assignment 2 |
| 5 | Regulating public utilities and competition policy | 4 | |
| 6 | Hong Kong's external economic relations | 4 | Assignment 3 |
| 7 | Labour and employment | 4 | |
| 8 | The structure of public finance | 4 | Assignment 4 |
| 9 | Topics in Hong Kong economy | 3 | |
| Revision | 2 | ||
| Total | 36 |
The study units summarize key issues, explain the relevant concepts and examples, and comment on related readings. Each unit contains activities and self-tests to reinforce your learning of the issues under discussion. Moreover, the assignments provide you with further feedback and help you achieve the learning outcomes of the course.
The course is structured so that each unit builds on previous units. Each unit contains a variety of techniques to help you study, and you should be aware that the following points will help you get the most out of the information presented:
Each unit has specific concepts, subject matter, activities and self-tests, and a summary of the materials covered.
Unit 1 An overview of the Hong Kong economy
The first unit introduces you to some statistical facts about the Hong Kong economy. It helps you develop a picture of the economy on your own. After finishing the unit, you will have learned some basic economic data of the Hong Kong economy, such as its Gross Domestic Product (GDP) and GDP deflator. You will be able to describe the trend of these data and their development. You will also be able to give reasons for the phenomenal economic growth in Hong Kong.
Unit 2 Development and structural change
This unit provides you with a historical account of Hong Kong's post-war economic development. To understand the post-war period, though, you are briefly taken through the British colonial period, during which Hong Kong developed from a small fishing village to an industrialized city and then, in more recent years, to a service-orientated economy.
Unit 3 Banking and financial systems in Hong Kong
Hong Kong is well known as an international financial centre. In this unit, you learn about the relationships between the financial markets and the overall development of the economy as well as the possible future of the financial markets. You see the peculiar features of money supply in Hong Kong and the mechanism of the linked exchange rate. The roles of the Hong Kong Monetary Authority are also discussed.
Unit 4 The housing market
The Hong Kong housing market is subject to wide fluctuations in demand and prices. In this unit, you learn how demand and supply within the housing market is generated, and in particular how the government policies affect those forces.
Unit 5 Regulating the public utilities and competition policy
This unit discusses the merits of competition and the demerits of monopoly power. The importance of competition policy is discussed along with the regulation or deregulation of public utility industries — electricity, gas, water, and telecommunications. You will gain a perspective on competitiveness in other industries, such as banking and insurance, and you will make sense of government policies for the improvement of the welfare of consumers.
Unit 6 Hong Kong's external economic relations
Trade and foreign investment are very important to the Hong Kong economy. In this unit, you learn how the patterns of trade and foreign investment evolved and how the opening of China and its WTO accession affect our trading and investment positions.
Unit 7 Labour and employment
An understanding of labour and employment policies and conditions in an economic perspective is essential for analysing social issues such as unemployment and income inequality. In this unit, supply and demand within the labour force are discussed, as well as labour policies.
Unit 8 The structure of public finance
The structure of public finances of an economy is the basis of a large number of government policies. In this unit, you learn how the Hong Kong Government's public finance stance affects its redistributive roles of public expenditure and taxation.
Unit 9 Topics in Hong Kong economy
In the last section of this course, three important topics, which do not fit into but related to previous sections, will be discussed. The first topic is old-age protection. Three major old-age protection schemes will be analysed. The topic of health care financing is dicussed next. The fundamental problems and their possible solutions are explored. The last topic discussed is the income distribution in Hong Kong. The important measure of income distribution (Gini coefficient) and the trend of income distribution in Hong Kong will be explored.
In addition to this Course Guide, please ensure that you have the following important course components from HKMU.
Printed materials
Set textbooks
There is no textbook for this course. The course materials are based on government publications and articles written by scholars in the field.
Readings
There are a small number of readings associated with each unit, but they are very important, as they provide insights into the complex economic issues addressed in this course.
Sources of major official figures (data)
It is important to analyse the Hong Kong economy using official figures (data).
Historical data can be found in:
Current figures can be found in:
In many of the study units, the data are reported and used whenever there is a need. Sources are also quoted, so interested students may do a further search, if needed.
Online components
This course will be put on line in order to enhance and facilitate your study. The optional Online Learning Environment (OLE) provides easier communication among students, tutors and the Course Coordinator through the Discussion Board, Email and Chat tools. Access to course news and information is quick and easy.
Suggested equipment for students and tutors
All students and tutors are encouraged to have access to a PC with an Internet connection. You may also use HKMU lab PCs, many of which have access to the Internet.
The following PC specifications are stated here only as minimum requirements, recognizing that you may be able to access much more powerful equipment:
The course assessment is designed to help you progress easily from the required readings in the study units through to the assignments and examination. You are required to apply the information and techniques you learn during the course when doing the assignments. The assignments must be submitted to your tutor for formal assessment in accordance with the deadlines stated in the Assignment File. The non-assessed self-test questions are not part of your formal assessment, but you should do these before progressing to the assignments.
Assignment File
Assignment details for this course are in your Assignment File. The nature of these assignments is described in the 'Aassignments' section below. You are required to complete your assignments and send them by mail (with an Assignment Form) to your tutor, in accordance with the timetable provided in the Presentation Schedule.
Presentation Schedule
The Presentation Schedule for this course is included in your course package. In this Schedule, you will see the approximate time for your tutor to receive your assignments. Please note that you must submit all of your assignments in time to reach your tutor by the dates shown in the Assignment File.
Assignments
There are four assignments. You are advised to study the unit(s) including the activities and self-tests (and their answers) before attempting to answer the questions in the assignments. More specific instructions are found in the Assignment File.
You are required to finish the assignments for tutors to grade. All the assignments count for the continuous assessment portion of the course. Fifty percent (50%) of your final grade depends on your assignments.
How to do your assignments
For each assignment, please read through the question, and the instructions accompanying the question, in the Assignment File. Please read the question carefully and make sure you understand what is required before attempting it.
Once you have completed each assignment, you must send it (with your Assignment Form) to your tutor. Please make sure that each assignment reaches your tutor on or before the deadline. However, if you cannot finish your assignment on time, you must contact your tutor before the deadline to discuss the possibility of an extension. Your tutor may grant you an extension of up to seven days. If more time is needed, you must obtain approval from the Course Coordinator or the Dean of the School of Arts and Social Sciences. No marks will be awarded for any late assignments without prior approval obtained (unless the Course Coordinator or the Dean so approves).
You must be careful when you are using other references in the research for your assignments. Plagiarism is copying someone else's work or ideas without indicating the original source of the material. HKMU takes a very serious view of plagiarism, and any student who commits plagiarism will be penalized. This applies just as much to using work of other students as it does to using work of authors of books. However, you may include parenthetical references to the works you cite, e.g. (Ho and Chau 1996, 88). So, you should include a section at the end of your assignment called 'References' in which the full name, title, date and place of the publication appear. The way to cite a reference is:
Ho, H C Y and Chau, L C (1996) The Hong Kong Economy in Transition, Hong Kong: Asian Research Service.
This citation technique is a normal and necessary part of science. It is good training to learn to acknowledge your sources of information as you do your assignments. This citation system is part of intellectual honesty and is most important in scientific literature. And, if you look at it another way, the fact that you say (write) something and someone else supports what you have written [the work (person) you cited] adds power to what you have said.
Tutors and assignments
Your tutor will mark your assignments and comment on them. He or she will keep an eye on your progress and assist you if you encounter problems during the course. Marked assignments will be returned to you as soon as possible.
It is a good practice to keep a copy of each assignment submitted for marking, so that you can always refer any queries to your tutor during telephone conversations. Hence, please contact your tutor should the following situations arise:
In addition to self-study, tutorials are organized to help you in your learning process. Details of the dates, time and location of the tutorials as well as the name and phone number of your tutor will be sent to you later.
It is strongly recommended that you attend all these tutorials, which will provide considerable assistance in your study of this course. Moreover, you will have the chance to meet other students who are studying at HKMU.
Assignment schedule
Note when your assignments occur.
| Unit | Title | Weeks | Assessment activity (end of unit) |
| 1 | An overview of the Hong Kong economy | 3 | |
| 2 | Development and structural change | 4 | Assignment 1 |
| 3 | Banking and financial systems in Hong Kong | 4 | |
| 4 | The housing market | 4 | Assignment 2 |
| 5 | Regulating public utilities and competition policy | 4 | |
| 6 | Hong Kong's external economic relations | 4 | Assignment 3 |
| 7 | Labour and employment | 4 | |
| 8 | The structure of public finance | 4 | Assignment 4 |
| 9 | Topics in Hong Kong economy | 3 | |
| Revision | 2 | ||
| Total | 36 |
Marking scheme
Final examination and grading
The final examination for this course will be three hours long and count for 50% of the total course grade. You should use the time between finishing the last unit and the examination to review the entire course. But, at university level, it is wise to study in a planned, periodic way, well before the final exam. Mature and hard-working students in the distance mode of education may need to be flexible in both study habits and times. You might find it useful to review your self-tests, assignments and your tutor's comments on them before sitting for the examination. You will be advised of examination arrangements after you send in your examination registration card.
The final examination covers information from all parts of the course and will be in a form you have already experienced in self-tests and assignments. Do not worry that the examination might contain tricky questions. This is not consistent with the clear, open approach HKMU takes to helping its learners succeed in their studies.
The following table tells you once again how the marks are allocated to the assessment items (assignments) and to your final examination. In order to pass this course, you must pass both the assignments component and the examination.
| Assessment type | Marks |
| Five (4) assignments, each carries 12.5% | 12.5% each × 4 = 50% |
| Examination The three-hour examination will comprise essay-type questions. | 50% |
| Total | 100% |
Students must pass both the continuous assessment component and the final examination to obtain credit in this course.
Tutors and tutorials
Hong Kong Metropolitan University prides itself on the support given to its distance learners. That means to you! Although you might think you are studying on your own, it doesn't need to be that way. You can be in regular contact with your tutor and, once you have met other students in the first tutorial, you can be in contact with them. Make a point when you meet another student to exchange phone numbers or email addresses. Then you are well on the way to developing a learning network of your own.
Tutorials
Eleven two-hour tutorials and two dayschools will be provided in support of ECON A203 Hong Kong Economy. You will be notified of the dates, time and location, along with the name, phone number and telephone tutoring hours of your tutor, as soon as you are assigned a tutorial group.
Tutorials are not lectures. They are designed to encourage group discussion and interaction. They provide you with opportunities to discuss any problems you encounter in the study units with your tutor and fellow students.
Hong Kong's economy is an important subject and a very important reality. Economics influences the daily lives of people from all walks of life and, as you can see from the frequent discussions of economic issues in the media, people really want to know what is going on. In this course, you have the chance to apply the economic theories you learned in your foundation and intermediate courses to give you a broad overview of the development and a current account of the happenings in Hong Kong's economy. You will definitely learn what's going on in Hong Kong.
In order to understand the content of this course, you must analyse the course materials and apply the concepts learned. I hope that you are able to apply the knowledge and skills from this course throughout your career.
Good luck, and what I really mean is much success, in this course. You'll enjoy it!
Michael Chi-Ming Leung obtained his PhD in Economics from the University of Western Ontario, London, Ontario, Canada. He is an independent consultant for the Hong Kong Economy course.
Pun Wing-chung is a consultant at Lingnan University. He received his M. Phil. in Economics at Columbia University. He has taught at the economics department of the Chinese University and Lingnan University. He has published economics articles in professional journals such as Journal of Comparative Economics and Journal of Theoretical Politics.
