Waters Economics has developed a new Spatial Economy Model for Hong Kong which looks at how economic activity is distributed throughout the city. The model covers 18 administrative district areas in Hong Kong and over 70 industry sector activities based on the Hong Kong Standard Industrial Classification (HKSIC). Population, persons engaged, number and size of establishments are analysed over a 15 year time period (2000 to 2015).
This model is a powerful tool which will be of interest to real estate commentators and investors, developers, city planners, policy-makers and anyone interested in the ongoing sustainable development of Hong Kong.
What is the Spatial Economy?
The spatial economy refers to the scale, type and distribution of people and economic activity across a geographical area. By looking at the economy and location at the same time, we can see the different roles that areas play, where different industrial sectors are clustered, how this has changed over time, and what this means in the context of new planned areas.
Example Analysis for Import and Export Trade Sector
The import and export trade industry is one of the largest employers in Hong Kong with almost 1 in 5 persons in private organisations working in this sector. However, the number of people employed has decreased in the last five years. The map shows how employment is distributed across Hong Kong, which areas are growing and which are declining. It highlights clusters of employment such as Kwun Tong where employment has increased over the last five years and Yau Tsim Mong, where employment has declined considerably. New pockets of growth are seen in Wong Tai Sing and Yuen Long.
