Discuss about the Economics for Unemployment Rate and Investment Policies.
This essay aims at developing understanding about the macroeconomic stability of the countries such as Singapore, South Korea and Hong Kong. The essay analyses the countries current GDP, unemployment rate and investment policies. Different authors have argued about the macroeconomic stability of the countries. Economical issues of the countries are also discussed by different authors in order to analyze the overall situation of the country.
It can be argued that the given statement is true to a large extent as the macroeconomic stability is the success factors for the countries Hong Kong, South Korea, and Singapore. There are certain factors that can be discussed for the countries macroeconomic stability by exploring this statement. According to the author Boubakri, Couharde, and Raymond, (2016); the current macroeconomic stability of Hong Kong is good. Its current GDP is 2.3% and the inflation is 4.4%. Hong Kong is the most open economy in the world. The unemployment rate is also decreased to 3.4 % in 2016 as comparison in 2015 by 3.7%. While, the author Dutt and Mobarak (2016) argue about the macroeconomic stability of Singapore that is GDP declining from 2011 to 2015 for 2.0% while the unemployment rate decreased from 2011 to 2015 to 1.9%, which is the positive part for Singapore. Its inflation rate slows down to negativity in 2015 at -15.3%. Moreover, the author Chang (2012) also describes about the South Korea economic and development factors which help to know more about the country. It is analyzed by the author that South Korea is one of the highly developed countries in the world in context of growth and development. This statement is supported of the author as the country is making progress in the economy but its current GDP is 2.7%. The countries inflation rate is 0.8% while its unemployment rate decreased to 3.5%. This shows the countries good macroeconomic stability.
Source: Chen and Tsang (2016)
Furthermore, by supporting the author Chen and Tsang (2016) Singapore and Hong Kong had certain similarities and differences as the government of Singapore is well known for the economic intervention. While on the other hand, the government of Hong Kong is well known for the free market approach. These are the differences between these countries but they also have the similarities for equal economic status. The other author suggests Rodan (2016) that these both countries are the development of particular strategy. It can also be suggested to both the countries government that they should adopt a mixture of interventionist and free market approach.
Wieland, et al., (2012) author also argues about the country Hong Kong plays an important role in the world. Its key role is to serve as trade and fund flows. Hong Kong macroeconomic stability over last 40 years can be described by the real growth of Gross domestic product (GDP). The economic growth of Hong Kong increased in 1970’s with the annual economic growth at 8.9%. In 1980’s, Hong Kong economic development was held at 7.4%. Moreover, owing of Asian financial crisis in 1997and 1998 it slows down the global economy in 2001. There was also the outbreak of Severe Acute respiratory syndrome (SARS) in 2003. Hong Kong average annual economic growth can be evaluated between 1997 and 2002 that was 1.9%.
Along with this, according to the author He, (2013) Hong Kong is also influenced by negative factors that it is shocked by the US interest rate have bigger impact on money supply. Both Singapore and Hong Kong has newly industrialized economy. Hong Kong has its own independent administration and the legal system is also independent according to the author Shiu-hing (2016). It also has various economic policies that are interest rate of Hong Kong is determined by the individual banks. It is governed under positive non interventionism and it is dependent upon international trade and finance. It is suggested by the author Fong, and Ngo, (2016) that the country’s economic strength must include a sound banking system with a strong legal system.
On the other hand, Singapore has a mixed economic policy. It adopts free market policies. It also has the lowest population growth rate in all over the world comparison with other countries like Hong Kong and South Korea. The author Hill and Lian (2013) argues about the less population as it has the negative effect on the country Singapore as it faces the problem of labor. The above author also argues about the economic policy of South Korea, which falls in middle rank with regard to economic policy. It includes the lowest tax rates as compare to other countries. Labor market policies of South Korea have the negative effect on the country because of irregular working conditions and employment. This country basically invests on research and innovation of new techniques for the future development of the country. At the same time, the author Bruno and Shin (2014) analyses that South Korea lacks high quality basic research, which has the negative effect on the country. The author Lee and Hong (2012) supports Hong Kong free trade economic policy as there is no charge on export and import of goods. The WTO was established in 1995 which had a success on tariffs and trade. At the same time, Singapore has the fourth largest foreign exchange market.
The other author Rioni (2016) argues about the countries economical issues as Hong Kong GDP slows down to 2.3% of 2015. The issues for the country such as instability in the financial markets confronted to the challenges. The other author gives suggestion to improve the existence of ethical issues in the country such as it should be pro active for facing issues. The author Cheung, Chan, and Kajewski, (2012) also argues about the foreign direct investment of Hong Kong which is highly attractive. By the survey of government towards FDI it is being analyzed that the investment estimated at US$ 1,488 billion at the end of 2014. The government also analyzed the outflows of Hong Kong and it ranked 3rd with US$175 billion in all over Asia after Japan. It is the 7th largest exporter of merchandise trade and for commercial services it ranked 14th all over the world.
The main source of Hong Kong is Chinese mainland for external investment. In Asia pacific Hong Kong is important for banking and financial centre. The author Funke, Paetz, and Pytlarczyk, (2011) supports the Hong Kong as the positive impact on overall economic performance which helps in removing barriers for private enterprises. The Hong Kong’s domestic product has also grown 180 times. The Hong Kong economic future also faced many challenges as the economic globalization and it also have the direct competition from the mainland china. It has trading partners such as China, United States, Japan, Taiwan, Germany, Singapore and South Korea.
According to the author Morgan (2012) argued about the average economic growth during 2003 and 2006 was 6.3%. In 2009, Hong Kong economic growth fell by 2.8%. Now, current economic score of Hong Kong is 88.6 .Its global ranking is 1st. Its standard income tax rate is 15 percent and the corporate tax rate is 16.5 percent. The tax rate system of the country is simple and efficient. The current GDP rate is 2.3% and inflation is 4.4%. It has a 0% tariff rate. It is one of the most open economies in the world for trade and investment. It expanded the economy year on year by growing by 2.4% in 2015 and it forecasted by 1.5% in 2016. The conditions of the labor market are tight. Hong Kong unemployment rate was 3.4% for 2016 as comparison with 2015 by 3.7%. Its prices of the consumer are increased by 2.7% in 2016.Hong Kong is the world’s freest economy and it is also called as world’s service oriented economy. It also includes service sectors which accounts more than 90% of GDP. Hong Kong is ranked third largest source for FDI after Japan, and Chinese mainland.
The author Dinnie (2015) also argued about the economic policies of Singapore as it has to move for the innovation ladder that is value added to value creating. The second challenge for Singapore is the company’s future that it should use new technologies for over all development. Technology is also a challenge for Singapore. It also has the other economic challenge that is the resources of the future for the countries. Future of technology is also the challenge for the country Singapore which is argued by the author Ling and Leong (2012).
Škerlavaj, Song, and Lee, (2010) the author also argues about the economic strategies as the country should shift from technology towards the knowledge based economy. The research and development of should also be promoted in order for the development of the country. In the argument of the author Managi, and Sharma (2016) attracting MNC’s to Singapore is an important strategy for the country. Singapore also faces the challenges for the future that is transition of growth, demographic transition, and disruption of technology and aspirations of jobs. The other author (Moscarini, Giuseppe and Fabien 2012) suggests about the improvement of old growth strategies to new strategies and the country should adapt the new technologies. It helps the country for the future economic growth and adopts the attractive jobs for the people of Singapore. It is important to adopt new technologies with the support of above author Leng (2010) Says the advancement in technology is important for new opportunities in the businesses.
Singapore is suggested by the other author Siddiqui (2010) so as to prevent from unemployment the country should also upgrade their skills whatever skills are missing. Future skills would help in the better future for the country development. The author also argues about the government of Singapore that is it promotes high level of investments and savings which adopts the policy such as Central Provident Fund. The strategy of Singapore also exceeded growth. The government of Singapore also manages two wealth funds that are Temasek holdings and GIC private limited used for the countries reserves. In current, Singapore ranked 15th for the trading partner of USA and Malaysia is analyzed as the biggest trading partner of Singapore. It imports mainly the petroleum products, electronic components, crude oil, food/beverages and chemical.
The other author argues Seth and Ragab (2012) about the corruption free government and skilled workforce has attracted investments for more than 3,000 multi-national corporations from the United States. The government also supports Singapore to invest outside the country. India’s growing economy helped Singapore as an expanding source for foreign investment.
The author Downie (2016) also argues about the economical issues of South Korea such as inflation in neighboring countries as the country is 50% dependent upon the international trade. Secondly, the china’s exposure is also a challenge for the country because the china is the largest exporter of South Korean goods. This country also faces the challenges of opportunity as Singapore. It is also facing problems in the industrial societies such as there is a gap between rich and poor. The other economical issue for the country is low fertility that slows down the economic growth of the country. There are other social issues of South Korea such as welfare of the society, aging population, environment, and the comparison with other countries.
The author Moon (2010) also argues about the other risks and challenges of the decrease in export, interest rate policies. Aging population is also a challenge for South Korea. Labor productivity is also the economic challenge for South Korea. The gap between SMEs small medium enterprises and large firms is included in the problem of South Korean economy. The author also discusses about the current issues for the global environment such as pollution, land and habitat preservation.
Conclusion
It can be concluded from the above discussion that the overall situation of the countries such as Singapore, South Korea and Hong Kong is constant due to several policies that these countries have adopted. It can be recommended that countries should adopt measures that create stable macroeconomic environment to develop the country with the strong GDP. The countries should also become pro active so as to improve the future economy of the countries.
Boubakri, S., Couharde, C. and Raymond, H. (2016) Effects of financial turmoil on financial integration and risk premia in emerging markets. Journal of Empirical Finance, 38, pp.120-138.
Bruno, V. and Shin, H.S. (2014) Assessing macroprudential policies: case of South Korea. The Scandinavian Journal of Economics, 116(1), pp.128-157.
Chen, H. and Tsang, A. (2016) The Impact of US Monetary Policy and Other External Shocks on the Hong Kong Economy: A Factor-augmented VAR Approach. USA: Johnny Wilson.
Cheung, E., Chan, A.P. and Kajewski, S. (2012) Factors contributing to successful public private partnership projects: Comparing Hong Kong with Australia and the United Kingdom. Journal of Facilities Management, 10(1), pp.45-58.
Chang, K.S. (2012) Economic development, democracy and citizenship politics in South Korea: the predicament of developmental citizenship. Citizenship studies, 16(1), pp.29-47.
Dinnie, K. (2015) Nation branding: concepts, issues, practice. UK: Routledge.
Downie. R . (2016) Economic Challenges South Korea. [Online]. Available at: https://www.investopedia.com/articles/investing/011516/4-economic-challenges-south-korea-faces-2016.asp (Accessed: 1 December, 2016)
Dutt, P. and Mobarak, A.M. (2016) Democracy and policy stability. International Review of Economics & Finance, 42, pp.499-517.
Fong, E. and Ngo, H.Y. (2016) Unemployment patterns of local-born and immigrant youth in Hong Kong. Journal of Population Research, 33(3), pp.243-261.
Funke, M., Paetz, M. and Pytlarczyk, E. (2011) Stock market wealth effects in an estimated DSGE model for Hong Kong. Economic Modelling, 28(1), pp.316-334.
He, D. (2013) Hong Kong’s approach to financial stability. International Journal of Central Banking, 9(1), pp.299-313.
Hill, M. and Lian, K.F. (2013) The politics of nation building and citizenship in Singapore UK: Routledge.
Lee, J.W. and Hong, K. (2012) Economic growth in Asia: Determinants and prospects. Japan and the World Economy, 24(2), pp.101-113.
Leng, C.H. (2010) Medical tourism and the state in Malaysia and Singapore. Global Social Policy, 10(3), pp.336-357.
Ling, F. and Leong, E. (2012) Performance of design-build projects in terms of cost, quality and time: views of clients, architects and contractors in Singapore. Construction Economics and Building, 2(1), pp.37-46.
Ma, W. (2016) Economic and Trade Information on Hong Kong. [Online]. https://hong-kong-economy-research.hktdc.com/business-news/article/Market-Environment/Economic-and-Trade-Information-on-Hong-Kong/etihk/en/1/1X000000/1X09OVUL.htm (Accessed: 29 November, 2016)
Managi, S. and Sharma, S.K. (2016) Special issue of the Singapore Economic Review—economics of crises and disasters. The Singapore Economic Review, 61(01), p.1602001.
Mishra, A.K., Rao, G., Monga, A. and Vishwanath, B. (2016) Assessing Competitiveness in Emerging Asian Economies: Role of Governance and Infrastructure and Lessons for India. Emerging Economy Studies, p.2394901515627732.
Moon, S. (2010) Multicultural and global citizenship in a transnational age: the case of South Korea. International Journal of Multicultural Education, 12(1).
Morgan, P.J. (2012) The role of macroeconomic policy in rebalancing growth. Journal of Asian Economics, 23(1), pp.13-25.
Moscarini, Giuseppe and Fabien Postel-Vinay.(2012) “The Contribution of Large and Small Employers to Job Creation in Times of High and Low Unemployment,” American Economic Review, 102 (6): 2509-2539.
Rioni, S.G. (2016) Hong Kong in Focus: Political and Economic Issues. [Online]. Available at: https://www.novapublishers.com/catalog/product_info.php?products_id=931 (Accessed: 30 November, 2016).
Rodan, G. (2016) The political economy of Singapore’s industrialization: national state and international capital.USA: Springer.
Seth, A. and Ragab, A. (2012) Macroeconomic vulnerability in developing countries: Approaches and issues. International Policy Centre for Inclusive Growth Working Paper, 94, pp.1-20.
Shiu-hing, L. (2016) The politics of democratization in Hong Kong. USA: Springer.
Siddiqui, K. (2010) The political economy of development in Singapore. Research in Applied Economics, 2(2), p.1.
Škerlavaj, M., Song, J.H. and Lee, Y. (2010) Organizational learning culture, innovative culture and innovations in South Korean firms. Expert systems with applications, 37(9), pp.6390-6403.
Wieland, V., Cwik, T., Müller, G.J., Schmidt, S. and Wolters, M. (2012) A new comparative approach to macroeconomic modeling and policy analysis. Journal of Economic Behavior & Organization, 83(3), pp.523-541.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download