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Why is China so Competitive? Measuring and Explaining China's Competitiveness

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Author Info
F. Gerard Adams
Byron Gangnes
Yochanan Shachmurove

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Abstract

This paper evaluates factors responsible for the competitiveness of China in the world economy and relative to its East Asian rivals. China has been highly successful in capturing world export markets. Chinese competitiveness is not just a matter of an undervalued exchange rate and extremely low labour costs. It reflects the coincidence of favourable cost conditions with improvements in China's ability to produce products that meet world market specififications. These improvements are closely related to foreign participation in China's economy through foreign direct investment and joint venture enterprises. Copyright 2006 The Authors
Journal compilation 2006 Blackwell Publishing Ltd .

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9701.2006.00773.x
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Article provided by Blackwell Publishing in its journal World Economy.

Volume (Year): 29 (2006)
Issue (Month): 2 (02)
Pages: 95-122
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Handle: RePEc:bla:worlde:v:29:y:2006:i:2:p:95-122

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  1. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-39, December. [Downloadable!] (restricted)
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  2. Balassa, Bela, 1979. "The Changing Pattern of Comparative Advantage in Manufactured Goods," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 259-66, May. [Downloadable!] (restricted)
  3. Summers, Robert & Heston, Alan, 1991. "The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 327-68, May. [Downloadable!] (restricted)
  4. Heston, Alan & Summers, Robert, 1996. "International Price and Quantity Comparisons: Potentials and Pitfalls," American Economic Review, American Economic Association, vol. 86(2), pages 20-24, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Yochanan Shachmurove & Uriel Spiegel, 2009. "Ricardo Meets China, India and U.S. Three Hundred Years Later," PIER Working Paper Archive 09-015, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
  2. Dilip Das, 2008. "Repositioning the Chinese economy on the global economic stage," International Review of Economics, Springer, vol. 55(4), pages 401-417, December. [Downloadable!] (restricted)
  3. Naude, Wim, 2009. ".Rushing in where Angels Fear to Tread?.: The Early Internationalization of Indigenous Chinese Firms," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  4. Jessie Bakens & Henri de Groot, 2007. "Globalisation and the Dutch Economy," CPB Discussion Papers 89, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  5. Cruz, Moritz, 2008. "Can Free Trade Guarantee Gains from Trade?," Working Papers RP2008/97, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  6. Hae-du Hwang & Xiangshuo Yin, 2008. "Recent developments on RTAs in North East Asia," Asia Europe Journal, Springer, vol. 6(3), pages 455-466, November. [Downloadable!] (restricted)
  7. Resmini, Laura, 2006. "Theoretical and Methodological Study on Comparative Advantages in Dynamic Growth Regions, Convergence and Inequalities Patterns," Papers DYNREG03, Economic and Social Research Institute (ESRI). [Downloadable!]
  8. Yochanan Shachmurove & Uriel Spiegel, 2006. "Technological Improvements and Comparative Advantage Reconsidered," PIER Working Paper Archive 06-023, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
  9. Chit, Myint Moe & Rizov, Marian & Willenbockel, Dirk, 2008. "Exchange Rate Volatility and Exports: New Empirical Evidence from the Emerging East Asian Economies," MPRA Paper 9014, University Library of Munich, Germany. [Downloadable!]
  10. Naude, Wim & Rossouw, Stephanie, 2009. "Early International Entrepreneurship in China: Extent and Determinants," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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