ECONOMIC ANALYSIS OF MACAU

Economic Analysis Of Macau

Abstract

The Macau economy started a gradual recovery in the 1950s. Industrialists were attracted to invest in Macau as Portugal allowed Macau to export its products to all Portuguese territories with duty-free privileges.11 Modern light industries, notably textiles, were set up in this stage. Macau is an open and vibrant free-market economy. Foreign investors are welcome to conduct business on the same terms as local business people. Taxation is low and relatively efficient. Since opening up the gaming industry, Macau has attracted more foreign investment, spurring tourism and overall consumption. Other growth areas include finance, insurance, and real estate. This study purely highlights the economic life of a Macau, (a small city next to Hong Kong). In the year 1999, it became the geographic part of China. This study also describes what government has done during and after financial storm of last year. The study also highlights the economic impact of financial storm, and its link to the construction industry.

Table of Contents

CHAPTER 1: INTRODUCTION5

Introduction5

Macau Economy Overview6

Purpose of Study10

Scope of Study11

Significance of the Study12

Research Questions13

CHAPTER 2: LITERATURE REVIEW14

Background of Macau and Hong Kong14

Economic and Construction Systems19

Government Intervention20

Policy Restriction And Interest Groups20

Lack of Motivation and Drive21

Gambling in Macau22

Why Macau?24

Financial Storm26

Collapse of Gaming Boom28

Welcoming the World's Casinos30

Economic Integration32

Macau and Greater China35

Impulses behind the Changing Structure of the Casino Industry36

Social Pressures37

Construction and Casino Industry Efficency Structure Change43

Oligopolistic Market Structure44

CHAPTER 3: RESEARCH METHODOLOGY48

Research Method48

Qualitative Method48

Secondary Data49

Literature Search49

CHAPTER 4:DISCUSSION AND ANALYSIS50

Discussion50

Analysis55

Changing Performance and Some Ongoing Concerns55

Changing Performances in the Different Sectors56

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS60

Recommendations65

REFERENCES68

BIBLIOGRAPHY71

CHAPTER 1: INTRODUCTION

Introduction

Today Macau is a stable economy as compare to previous decades. (Edmonds 1994, 78-85) In the past it has seen financial crisis and many economic failures. Macau is 'read' as a Cultural Janus. Janus is a Roman god or numen, guardian of the doorways of dwelling houses and city gateways. He is usually portrayed with two faces looking in opposite directions and is denoted to have two contrasting characteristics. Hence, I would call Macau a Cultural Janus on both near literal and metaphorical planes. It is because Macau is China's 'gate' to the outside world and has two faces: the face of Chinese civilization and the face of Portuguese legacies. Since Macau has been nurtured by two dominant yet contrasting cultures, it is a Januslike ecumene having two culturally different aspects. Moreover, just as Janus (for whom January is named) looks back to December (the past) and forward to February (the future), Macau looks back to Portugal and forward to China at this historical moment.

Macau's physical marginality from Mainland China and peripheral relations with Chinese and Western cultures constitute its identity as a cultural 'threshold' and a crossroads of the East and the West. It once enjoyed admirable prosperity, but its harbour was easily silted up by the outflow of the Pearl and West Rivers. Macau was subsequently eclipsed when Britain acquired Hong Kong in 1841 and turned it into an international trading centre partly because of its deep-water ...