Development strategies of small economies: Singapore, Hong Kong and Macao

Abstract

Purpose – The purpose of this paper is to examine the economic development in Singapore, Hong Kong and Macao to find the reasons for the success. Design/methodology/approach – Applying economic development theories and using archival data to examine the development strategies of the three economies. Findings – There is no single model suitable for economic development for all, and small economies need to be strategically interventionist by either inducing development or balancing the disequilibria caused by development. Originality/value – This is the first comparative study to examine these three fast-growing small economies. The findings lend insight into Hirschman’s theory of unbalanced growth and Stiglitz’s assertion that different economies and conditions require different development strategies.