Bulletin Number Five 1985

Departmental Profiles Department of Economic s The Department of Economics was established in 1963 ， with offices scattered in the three Colleges. It is now physically integrated, and the present arrangement has proved to be excellent in promoting more frequent interaction among our staff members. The Department of Economics has eighteen faculty members ， three full-time teaching assistants, three part-time graduate assistants and one technician. Under the chairmanship of Professor T.B. L i n, the Department is committed to quality teaching and research. Programmes of Studies The Department offers three degree programmes, namely BSSc ， MPhil and PhD. In 1985-86 ， there are 250 major students, 248 minor students, nine MPhil and three PhD students enroled in the Department. Over the years balanced curricula have been worked out for the three degree programmes. Our students receive solid training in economic theories, mathematical and statistical techniques. They are required to deepen their understanding by intensive study of some applied areas. Although its curricula are demanding, Economics is still a popular subject among the students. Every year the Department has regrettably turned away a large number of well- qualified students who wanted to enrol in our programmes, owing to the stringent admission quotas. The graduates of our programmes have encountered no difficulty in finding good employment. Many have fared extremely well both in the public and private sectors. Perhaps more significantly, a sizable number is pursuing higher degrees in Economics in leading universities in Britain and the United States, and they have performed quite brilliantly. Research Activities The Department of Economics has placed strong emphasis on research. Members of the Department have wide-ranging research interests and are engaged in research in different areas of the discipline. The Department is particularly strong in the economies of Hong Kong and China. Over the past two decades, our staff have contributed t o the understanding of the two economies through the accumulation of empirical studies and theoretical modelling. In collaboration with Dr. W.L . Chou, Professor T.B. Lin is refining his ERC Econometric Forecasting Model of the Hong Kong Economy by extending it from an annual model to a quarterly one. The Hong Kong model is an important component of the Pacific Asian L i nk System maintained at UNESCAP in Bangkok, which is a satellite of the Global L i nk Model coordinated by the Nobel laureate Professor Lawrence Klein. Based on the ERC model, ex ante forecasts have been made regularly for Hong Kong's gross domestic product and its components since 1979. The forecasting exercise over the past six years has drawn a great deal of attention from the public. The forecasts have been used by banks and executives in private enterprises as guides for their policies. They also provide useful references for the government in preparing its budget. To test the robustness of the ERC Econometric Forecasting Model, Dr. W.L. Chou is developing time series transfer function models. She also continues her work on refining the depreciation and capital data. Besides refining the ERC model, Professor Lin is currently looking into issues of growth and distribution. In collaboration with Dr. Alan K. Siu, he is working on the problems of structural change and economic adaptation in Hong Kong. With the assistance of other members of the Department, Dr. Victor Mok is now compiling an English-Chinese Glossary of Economic Terms. Besides offering a standard handbook to translators, the Glossary will be extremely useful to Chinese students of Economics, both in Hong Kong and China. Dr. Y.W. Sung is investigating various aspects of international trade, while Mr. Y.P. Ho is studying the development of trade and industry. Fiscal policies, transportation system, labour markets and poverty in Hong Kong are being investigated by Drs. L.S. Ho, Alan K. Siu, Y.C. Wong, and K.S. Kwong,respectively. Dr. C.M. Chan, Mr. MX . Lau and Mr. Y.F. Luk are working on different aspects of the development process, while Dr. P.W. l i u is studying optimal investment in specific human capital training. Drs. T.T. Hsueh and Y.Y. Kueh are experts on China. Dr. Hsueh is studying the special economic zones and heavy industries, while Dr. Kueh continues his work on the interaction between weather, technology and agricultural instability. Dr. T.Y. Cheng is studying the economic ties between Hong Kong RECENT DEVELOPMENTS 25