Economic Development of Hawaii

             Hawaii, with an area of 28,313 sq. km (10,932 sq. mi.), is the
             43rd largest state in the U.S.; 6.9% of the land is owned by the
             federal government. It consists mainly of the Hawaiian Islands, eight
             main islands and 124 islets, reefs, and shoals. The major islands in
             order of size are Hawaii, Maui, Oahu, Kauai, Molokai, Lanai, Nihau,
             and Kahoolawe. Population growth has increased by 80,000 persons over
             the past five years. Demographics show a large number of Hispanic
             origin: Asian Hispanics are the most populated with white Hispanic
             and Asian non-Hispanic following. Hawaii's economy has been long
             dominated by plantation agriculture and military spending. As
             agriculture has declined in importance, the economy has diversified to
             encompass a large tourist business and a growing manufacturing
             Hawaii's economy has changed drastically since statehood. In
             1958, defense, sugar, and pineapple were the primary economic
             activities, accounting for 40% of Gross State Product (GSP). In
             contrast, visitor-related expenditures stood at just over 4% of
             Hawaii's GSP prior to statehood. Today the positions are reversed;
             sugar and pineapple constitute about 1% of GSP, defense accounts for
             just under 11%, while visitor-related spending comes close to 24% of
             The movement toward a service- and trade-based economy becomes
             even more apparent when considering the distribution of Hawaii's jobs
             across sectors. The share of the economy's jobs accounted for by
             manufacturing and agriculture have declined steadily since 1959 and
             each currently makes up less than 4% of total jobs in the economy. At
             the same time, the shares of jobs in wholesale and retail trade and in
             services have risen, standing at about 23% and 28%, respectively.
             Since 1991, Hawaii's economy has suffered from rising rates of
             unemployment. This stands in marked contrast to...

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