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

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  • F. Gerard Adams
  • Byron Gangnes
  • Yochanan Shachmurove

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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Bibliographic Info

Article provided by Wiley Blackwell 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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References

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  1. 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.
  2. 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.
  3. 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.
  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.
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Cited by:
  1. José De Sousa & Sandra Poncet, 2011. "How are wages set in Beijing," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00633752, HAL.
  2. Bustillo Mesanza, Ricardo & Maiza Larrarte, José Antonio, . "EAEren eta Txinaren arteko harreman ekonomikoak: aukerak eta erronkak," Revista de Dirección y Administración de Empresas, Universidad del País Vasco - Escuela Universitaria de Estudios Empresariales de San Sebastián.
  3. Ahmed, Saira & Ahmed, Vaqar & Sohail, Safdar, 2010. "Trade agreements between developing countries: a case study of Pakistan - Sri Lanka free trade agreement," MPRA Paper 29209, University Library of Munich, Germany.
  4. Myint Moe Chit & Marian Rizov & Dirk Willenbockel, 2010. "Exchange Rate Volatility and Exports: New Empirical Evidence from the Emerging East Asian Economies," The World Economy, Wiley Blackwell, vol. 33(2), pages 239-263, 02.
  5. 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.
  6. Wim Naudé & Stephanié Rossouw, 2010. "Early international entrepreneurship in China: Extent and determinants," Journal of International Entrepreneurship, Springer, vol. 8(1), pages 87-111, March.
  7. 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.
  8. Cruz, Moritz, 2008. "Can Free Trade Guarantee Gains from Trade?," Working Paper Series RP2008/97, World Institute for Development Economic Research (UNU-WIDER).
  9. 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.
  10. Wim Naudé, 2009. "“Rushing in where angels fear to tread”?: The early internationalization of indigenous Chinese firms," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 2(3), pages 163-177, October.
  11. Dilip Das, 2008. "Repositioning the Chinese economy on the global economic stage," International Review of Economics, Springer, vol. 55(4), pages 401-417, December.
  12. 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).
  13. Brendan Coates & Dougal Horton & Lachlan McNamee, 2012. "China: prospects for export-driven growth," Economic Roundup, Treasury, Australian Government, issue 4, pages 79-102, December.
  14. Henri de Groot & Jessie Bakens, 2007. "Globalisation and the Dutch economy; a case study to the influence of the emergence of China and Eastern Europe on Dutch international trade," CPB Discussion Paper 89, CPB Netherlands Bureau for Economic Policy Analysis.
  15. Yaya Sissoko & David Yerger, 2010. "West Africa’s Evolving Competitive Exposure in U.S. Import Markets," International Advances in Economic Research, Springer, vol. 16(1), pages 11-23, February.
  16. Zhang, Abraham & Luo, Hao & Huang, George Q., 2013. "A bi-objective model for supply chain design of dispersed manufacturing in China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 48-58.

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