Graduation Year
Fall 2013
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Asian Studies
Second Department
Economics
Reader 1
Minxin Pei
Reader 2
Emily Chao
Rights Information
© 2013 Emmett Choy
Abstract
Hong Kong is considered to be the most economically free country in the world, but also has the highest amount of income inequality of any developed country. The Hong Kong government is able to sustain laissez faire policies due to its monopoly on land supply. Maintaining high property values allows the government to maximize revenue from property tax, which acts as a hidden tax. A major contributor to income inequality is the formation of oligopolies in Hong Kong that creates an anticompetitive environment. The interests of the government and oligarchs are aligned as both obtain significant portions of revenue from the property sector. As globalization makes Hong Kong even more vulnerable to external shocks, the government faces the challenges of increasing competition, diversifying its revenue streams, and closing the income gap while standing by its principles in order maintain regional competitiveness as an international business hub.
Recommended Citation
Choy, Emmett, "Hong Kong's Economic Freedom and Income Inequality" (2013). CMC Senior Theses. 718.
https://scholarship.claremont.edu/cmc_theses/718
Included in
Antitrust and Trade Regulation Commons, Business Law, Public Responsibility, and Ethics Commons, International Business Commons, Land Use Law Commons, Real Estate Commons, Taxation-Federal Commons
