The Choice of Technology and Employment

  • Edward K. Y. Chen


In the last two chapters, we have observed that the major manufacturing industries in Hong Kong have enjoyed relatively high rates of technical progress. To a large extent, the rate of technical progress is related to the extent of foreign investment. Foreign firms in general act as important agents of technology transfer and their presence has facilitated the rate of diffusion among firms as well. However, in the last two chapters, we have not touched upon the question of technology appropriateness. In terms of output objectives, the presence of foreign firms has undoubtedly contributed to the promotion of productivity growth and thus output growth. But there are evidently other important objectives of technology choice. In a labour-abundant economy, employment generation is definitely an equally, if not more, important objective of technology choice.1 It is the purpose of this chapter to examine the employment implications of the choice of technology in the presence of foreign firms in the Hong Kong manufacturing sector.


Factor Intensity Foreign Firm Multinational Corporation Factor Proportion Factor Price 
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Copyright information

© Edward K.Y. Chen 1983

Authors and Affiliations

  • Edward K. Y. Chen
    • 1
  1. 1.University of Hong KongHong Kong

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