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Why Is China So Competitive? Measuring and Explaining China’s Competitiveness

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Author Info
F. Gerard Adams (Department of Economics, Northeastern University)
Byron Gangnes () (Department of Economics, University of Hawaii at Manoa)
Yochanan Shachmurove (City University of New York)

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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 and extremely low labor costs. It reflects primarily the coincidence of favorable cost conditions with improvements in China’s ability to produce products that meet world market specifications. These improvements are closely related to foreign participation in China’s economy through foreign direct investment and joint venture enterprises.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_04-6.pdf
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File Function: First version, 2004
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Publisher Info
Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200406.

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Length: 33 pages
Date of creation: Mar 2004
Date of revision:
Handle: RePEc:hai:wpaper:200406

Note: Also Singapore Management University Economics and Statistics Working Paper 07-2004, March 2004
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Related research
Keywords: China exports; comparative advantage; competitiveness; purchasing power parity; exchange rate; undervaluation; international comparisons; foreign direct investment; joint ventures;

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Find related papers by JEL classification:
D9 - Microeconomics - - Intertemporal Choice and Growth
Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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References listed on IDEAS
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. 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. 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!]
  3. 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)
  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. 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!]
  6. Cruz, Moritz, 2008. "Can Free Trade Guarantee Gains from Trade?," Working Papers RP2008/97, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  7. 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!]
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