HK still competitive but it's not first world, study finds

City rated strong on rule of law but poor for education and quality of life

Hong Kong is maintaining its position as a competitive economy in the region, but has yet to become a truly 'first-world' economy, according to the first of a four-phase study sponsored by the Bauhinia Foundation.

Prepared by University of Hong Kong competitiveness expert Michael Enright, the study is analysing 17 rankings, compiled on the mainland and internationally, on various aspects of competitiveness and the components that comprise them.

To be completed next November, the study will also identify Hong Kong's competitive strength in industries and economic sectors, as well as other areas that affect the city's competitiveness.

Announcing the first-phase findings, Professor Enright said yesterday the rankings pointed to Hong Kong as a top world economy, 'about top 10 to 15'.

The study found that, 'in terms of policy and related matters, the sources [indexes] agree, for the most part, that Hong Kong does a very good job on the basics,' citing the rule of law, basic macro policies, and infrastructure.

'But [it does] a relatively poor job on what we might consider 'high-order' features, such as education, creativity, quality of services, public institutions, costs, quality of life, and corporate governance standards. In these areas, Hong Kong falls behind the world's best economies and cities,' the report concluded.