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Open AccessArticle

Sustainable Development for Small Economy and Diversification from a Dominant Industry: Evidence from Macao

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School of Business, Sun Yat-sen University, No. 135, Xingang Xi Road, Guangzhou 510275, China
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Macau Institute of Systems Engineering, Macau University of Science and Technology, Avenida Wai Long, Taipa, Macau, China
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The Center for Studies of Hong Kong, Macao and Pearl River Delta, Institute of Guangdong, Hong Kong and Macao Development Studies, Sun Yat-sen University, No. 135, Xingang Xi Road, Guangzhou 510275, China
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Faculty of International Tourism and Management, City University of Macau, Avenida Padre Tomás Pereira, Taipa 999078, Macau, China
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Authors to whom correspondence should be addressed.
Sustainability 2019, 11(6), 1626; https://doi.org/10.3390/su11061626
Received: 26 January 2019 / Revised: 8 March 2019 / Accepted: 12 March 2019 / Published: 18 March 2019
(This article belongs to the Special Issue Sustainable Economic Development: Challenges, Policies, and Reforms)
While the Macao gambling industry has developed prosperously, its rapid development raises a problem of economic dependence on gambling that restricts economic diversification and causes a sustainable issue of non-gambling industries. In recent years, regulating and controlling the appropriate scale of the gambling industry have been regarded as a solution for sustainable economic development. Consequently, it is quite important to give a quantitative scale to the future development of the gambling industry. This study aims to estimate the appropriate scale of the gambling industry under the expectation of the optimal development of moderate economic diversification in Macao. This study employs the method of Measuring Economic Diversification in Hawaii in 2011 to evaluate the levels of diversification of Macao’s economy. A Data Envelopment Analysis (DEA) efficiency calculated by a bootstrapping model is applied to obtain the operational efficiency of Macao’s gambling industry. A transition probability matrix in three scenarios is predicted by expert interviews and industry interviews. The appropriate scale of Macao’s gambling industry until 2021 is forecasted by Markov chain. The predicted result shows that the growth rate of gambling will not exceed 3% in terms of achieving the goal of optimal developing moderate economic diversification in Macao. View Full-Text
Keywords: sustainability; gambling industry; economic diversification; dominant industry; Macao sustainability; gambling industry; economic diversification; dominant industry; Macao
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Choi, F.; Hon, C.T.; Mao, Y.H.; Lai, I.K.W. Sustainable Development for Small Economy and Diversification from a Dominant Industry: Evidence from Macao. Sustainability 2019, 11, 1626.

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