This paper reviews factors that significantly affected Hong Kong's rapid economic development in three consecutive periods: (i) the period of industrialization from 1952 to 1974, (ii) the period of diversification from 1974 to 1980, and (iii) the period of economic integration with China since 1980. The paper discusses the role of Hong Kong's government in the territory's development process, examines the advantages and drawbacks of Hong Kong's development strategy, and analyzes the territory's economic future. The analysis relates Hong Kong's development experience to the “endogenous growth” the