This paper calculates a unit labor-cost based real effective exchange rate for China for the period 1987-2002. It examines carefully which data sources can be used given the known limitations of Chinese data and constructs to them together with internationally available unit labor cost estimations for a number of industrialized countries, including Korea and Taiwan. It is found that gauged by the ULC measure the increase in manufacturing competitiveness from the late 1980s to the mid 1990s has been even more remarkably than given known industrial-price- based measures for real effective exchange rates suggest. However, since then, Chinese manufacturers have lost more ground than previously thought.
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Paper provided by EconWPA in its series International Trade with number
0502016.
Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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