StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Economic Trends and Prospects in Developing Asia - Essay Example

Cite this document
Summary
This essay "Economic Trends and Prospects in Developing Asia" discusses the concept of broadening Hong Kong’s tax base as nothing more than a textbook solution to the widening budget deficit, brought about mainly by the collapse of the housing market…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Economic Trends and Prospects in Developing Asia
Read Text Preview

Extract of sample "Economic Trends and Prospects in Developing Asia"

Download file to see previous pages

Usually, the problem arises because it is politically difficult to lower the demand for expenditure growth and to raise revenue to match the government’s tendency to spend more and more. Almost all political systems, democracies included, have this problem. Fortunately for Hong Kong, the Basic Law provides a kind of constitutional limitation of budget deficits. According to Professor William Baumol, “another reason that the public spending tends to rise faster than revenues stems from the fact that the most important component of public spending is civil service remuneration”(Fiscal Issues) Sometimes, volatility can mask what is essentially a structural issue.

In a good year, when revenue increases, so do spend. In a bad year, however, spending does not decrease when revenue does. If spending always grew to match growth in revenue, over time, spending would exceed revenue. This volatility is really a structural imbalance between spending and revenue. Baumol further states, “the rising share of public expenditure in GDP and the faster growth of recurrent spending over recurrent revenue is the main structural problems with the Hong Kong budget”(Fiscal Issue) In some countries – as for instance, most of the European countries – the reforms consists of a gradual process of adaptation.

As a consequence, the tax systems in operation in the 30 OECD member countries today are fundamentally different from those which operated in the mid-1980s.

          The recent tax reforms have been driven by the need to provide a more competitive fiscal environment that encourages investment, risk-taking, entrepreneurship, and provides increased work incentives. At the same time, governments have been aware of the importance that taxpayers maintaining their faith in the integrity of their tax systems. In this context fairness and simplicity are two keywords. Fairness requires that taxpayers in similar circumstances pay similar amounts of tax and that the tax burden is appropriately shared.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“What are the effects if the government implement of Good-and-Services Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1540477-what-are-the-effects-if-the-government-implement-of-good-and-services-tax-gst-in-hong-kong-with-the-aim-of-broaden-the-tax-base-in-hong-kong
(What Are the Effects If the Government Implement of Good-and-Services Essay)
https://studentshare.org/macro-microeconomics/1540477-what-are-the-effects-if-the-government-implement-of-good-and-services-tax-gst-in-hong-kong-with-the-aim-of-broaden-the-tax-base-in-hong-kong.
“What Are the Effects If the Government Implement of Good-and-Services Essay”, n.d. https://studentshare.org/macro-microeconomics/1540477-what-are-the-effects-if-the-government-implement-of-good-and-services-tax-gst-in-hong-kong-with-the-aim-of-broaden-the-tax-base-in-hong-kong.
  • Cited: 0 times

CHECK THESE SAMPLES OF Economic Trends and Prospects in Developing Asia

Economic Development in South East Asia

The economic outlay of South East asia reveals diverse yet unifying similarities regarding policy issues, socio-political background, and development strategy.... Economic Development in South East asia Student's Names Institution's Name Abstract The economic outlay of South East asia reveals diverse yet unifying similarities regarding policy issues, socio-political background, and development strategy.... Sweeping generalizations of the economic status of the Asian economy have blurred this indispensable perspective, especially for the South East asia region....
16 Pages (4000 words) Term Paper

An Overview of the Global Real Estate Market

Many developing and developed countries of the world have encountered the recent property hike.... The paper "An Overview of the Global Real Estate Market" highlights that the commercial buyers of hotels and luxury housing may have greater strength to bargain a price.... This is due to the high competition among different companies to sell their products....
15 Pages (3750 words) Dissertation

Recent Trends in Economic Integration in the Asia Pacific Region

(Myoung-Ho Shin, September 2005) These events had contributed to the economic trends of the Asia-Pacific region as well as provide a great impact on Asia's Economic Development.... Poverty, environment, agricultural protectionism are few of the problems encountered in the asia-Pacific region.... he main focus of this paper is to identify the recent trends in Economic Integration in the asia Pacific Region, discuss their impact on Economic Development and discuss the future development of the region....
8 Pages (2000 words) Essay

The Effectiveness of Malaysia and South Korea's Economic Development Strategies

Up to the early years of the 70's it had been claimed that the ISI economic strategies used in the developing countries of asia, Africa, and Latin America were largely responsible for the high levels of economic growth in countries as diverse as Chile, Malaysia, and South Korea.... This essay "The Effectiveness of Malaysia and South Korea's economic Development Strategies" thoroughly examines the effect of economic development strategies and their outcomes after the 70's when they started approaching Industrialization as a means of promoting higher growth rates....
14 Pages (3500 words) Essay

Future Economic Trends in Indonesia

The paper 'Future economic trends in Indonesia' presents Indonesia which passed a long way through colonization to independence and sustained economic growth.... The paper includes a brief analysis of future economic trends in Indonesia.... Located in the equatorial region of asia, Indonesia occupies about 2 million sq.... However, as the global crisis is moving to its end, the developing world faces better chances to improve their economic position....
7 Pages (1750 words) Term Paper

Brain Gain versus Brain Drain

Within the asia-Pacific region, immigration and emigration of professionals and skilled workers have become a pivotal point for some of the world's economic movers including China and India.... In this regard, the return channel of the immigrants meant substantial brain gain for the developing countries and absence channel for the western countries.... In addition, 28% have been attracted back by brighter prospects, and 25% have been attracted by enhanced education systems and options....
8 Pages (2000 words) Research Paper

East Asian Economic Cooperation

Particularly East asia has experienced a rapid rise in regional trading blocks against the backdrop of the continuously increasing trend of globalization throughout the world.... In fact, prior to 1997, there was no single RTA in East asia.... However, this status of East asia is changing quite rapidly.... In the context of the dissertation 'East Asian economic Cooperation', it is very necessary to find out the trading pattern in the region under consideration before analyzing the factors that have played the major role in the emergence of such pattern....
16 Pages (4000 words) Dissertation

Introduction to Asian Cultures

Job creation in India has been more effective in the informal sector than in the formal sector, this is because of the many labor laws that are practically chocking the manufacturing sector from developing.... 157-8), the economic sector in India has grown tremendously in the recent couple of years, however, there is still a large room for more growth and development in the country.... The economic growth of India has helped improve the standards of living of more than 200 million people reducing the poverty level from half of the population to almost a fifth of their citizens no living below the poverty line....
10 Pages (2500 words) Report
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us