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Chinese Manufacturing Performance from Multilateral Perspective: 1980-2004

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Author Info
Ruoen Ren
Haitao Zheng
Abstract

Based on our research work of 1998, we discuss Chinese manufacturing performance from multilateral perspective in 1980-2004 through performing the comparison of labour productivity between China and its trade partners so as to better understand the problems of RMB exchange rate. We talk about Chinese manufacturing competitiveness through the multilateral comparison of PPPs, relative price levels, labor productivity and ULCs, with the PPPs being standardized according to the base year 1997. All of the results are compared with those in the year 1987. The following findings are presented: in Chinese manufacturing, the various PPPs in the base year 1997 are approximately 3.7 yuan/international $. After the middle 1980s, the relative price turns the lowest in all the five investigation countries. Furthermore, it is still trending downward. ULC is declining albeit the fluctuations. In the 1980s, there is no "catch-up" rapid growth in labor productivity. However, after 1992, it has shown a distinct "catch-up", though with the low level.

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Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d06-170.

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Date of creation: Jun 2006
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Handle: RePEc:hst:hstdps:d06-170

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Related research
Keywords: Multilateral comparison; Manufacturing; International competitiveness;

Find related papers by JEL classification:
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

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  1. Prasada Rao, D.S. & Timmer, Marcel, 2000. "Multilateralisation of manufacturing sector comparisons : issues, methods and empirical results," GGDC Research Memorandum 200047, Groningen Growth and Development Centre, University of Groningen. [Downloadable!]
    Other versions:
  2. Diewert, Erwin, 2007. "Index Numbers," UBC Departmental Archives diewert-07-01-03-08-17-23, UBC Department of Economics, revised 31 Jan 2007. [Downloadable!]
  3. Selvanathan, E. A. & Prasada Rao, D. S., 1992. "An econometric approach to the construction of generalized Theil-Tornqvist indices for multilateral comparisons," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 335-346. [Downloadable!] (restricted)
  4. Pilat, Dirk & Rao, D S Prasada, 1996. "Multilateral Comparisons of Output, Productivity, and Purchasing Power Parities in Manufacturing," Review of Income and Wealth, Blackwell Publishing, vol. 42(2), pages 113-30, June.
  5. Khamis, Salem H, 1984. "On Aggregation Methods for International Comparisons," Review of Income and Wealth, Blackwell Publishing, vol. 30(2), pages 185-205, June.
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