Abstract

The article focuses on problems of economic growth of Hawaii, offers estimates of economic potential of the state and discusses the critical need and the proposals for improving transportation between Oahu and the neighbor islands. Although the welfare of Hawaiians has traditionally been tied to agricultural prosperity, recent trends suggest that the structure and organization of production are changing. In the past decade, the value of agricultural production grew by less than $15 million and agricultural labor as a percentage of total employment fell from 16 to 8 per cent. The Hawaiian garment, fruit, perfume, and handicraft industries have helped to push the value of manufactured products close to the level of total dollar volume of the tourist trade. Hawaii also faces number of economic uncertainties. Sugar is no longer a growth industry. Its expansion is limited by high costs of production, government control of prices, increased competition, and scarcity of land. The state should encourage the economic growth of the neighbor islands in order to avoid further congestion on Oahu and to provide a more balanced growth throughout the islands.