Deindustrialization and the Changing Spatial Structure of Hong Kong, China

Abstract

Deindustrialization and the rise of the service economy have altered the urban landscape in many countries, and are generally associated with redevelopment in central cities and gentrification. This paper examines the spatial dimension of the transformation of the economic geography of Hong Kong at the turn of the 21st century, asking specifically how the relative centralization of employment and steepening of the bid rent curve has affected the residential location of different income groups. The Hong Kong case is noteworthy due to the speed of deindustrialization, the centralization of employment during this time period, and extensive urban growth due in part to the construction of public housing projects in outlying new towns. The paper describes changes in the distribution of jobs over space and sectors from 1986 to 2006, and analyzes the changes by distance to city center and at the neighborhood level using census, geographic, and administrative data for 150 neighborhoods. Wealth is found to be centralized though this centralization has declined. This decline stems more from an increase in incomes in outlying areas, however, than from a change in incomes in central parts of the city. Public housing plays an important role in limiting income change, as residents of public housing move infrequently, and government investments do not have a significant impact on neighborhood change at the scale measured. The implications for Chinese cities are explored in the conclusion.