Does China Still Have a Labor Cost Advantage?
In recent years wages in China have been rising and the yuan has appreciated, potentially eroding Chinaâ€™s cost advantage in manufactures. This paper explores the evolution of Chinaâ€™s relative unit labor costs in manufacturing over 1998-2009. Between 1998 and 2003 Chinaâ€™s unit labor costs fell, but since 2003 they have increased both absolutely and relative to US unit labor costs. Much of the rise in Chinaâ€™s relative unit labor costs can be traced to a real appreciation of the yuan against the dollar. Despite the recent rise, Chinaâ€™s unit labor costs remain low relative to those in most other countries.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
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.:
- DennisTao Yang & VivianWeijia Chen & Ryan Monarch, 2010.
"Rising Wages: Has China Lost Its Global Labor Advantage?,"
Pacific Economic Review,
Wiley Blackwell, vol. 15(4), pages 482-504, October.
- Dennis Tao Yang & Vivian Chen & Ryan Monarch, 2009. "Rising Wages: Has China Lost Its Global Labor Advantage?," Economics Program Working Papers 09-03, The Conference Board, Economics Program.
- Yang, Dennis T. & Chen, Vivian & Monarch, Ryan, 2010. "Rising Wages: Has China Lost Its Global Labor Advantage?," IZA Discussion Papers 5008, Institute for the Study of Labor (IZA).
- Michiel Dijk, 2003.
"South African Manufacturing Performance In International Perspective 1970-1999,"
South African Journal of Economics,
Economic Society of South Africa, vol. 71(1), pages 119-142, March.
- Dijk, Michiel van, 2002. "South African manufacturing performance in international perspective, 1970-1999," GGDC Research Memorandum 200258, Groningen Growth and Development Centre, University of Groningen.
- Adam Szirmai & Ruoen Ren & Manyin Bai, 2005. "Chinese Manufacturing Performance in Comparative Perspective, 1980-2002," Working Papers 920, Economic Growth Center, Yale University.
- Rawski, Thomas G. & Xiao, Wei, 2001. "Roundtable on Chinese Economic Statistics Introduction," China Economic Review, Elsevier, vol. 12(4), pages 298-302.
- Bart van Ark & Abdul Azeez Erumban & Vivian Chen & Utsav Kumar, 2009. "the Cost Competitiveness of the Manufacturing Sector in China and India: An Industry and Regional Perspective," Economics Program Working Papers 09-02, The Conference Board, Economics Program.
- van Ark, Bart, 1998. "Productivity," Journal of the Japanese and International Economies, Elsevier, vol. 12(2), pages 171-174, June.
- Nanno Mulder & Sylvie Montout & Luis Peres, 2002. "Brazil and Mexico's Manufacturing Performance in International Perspective, 1970-1999," Working Papers 2002-05, CEPII research center.
- Immaculada MartÃnez-Zarzoso & Felicitas Nowak-Lehmann D. & Sebastian Vollmer, 2007. "Competitiveness â€“ A Comparison of China and Mexico," CESifo Working Paper Series 2111, CESifo Group Munich.
- Edwards, Lawrence & Golub, Stephen S., 2004. "South Africa's International Cost Competitiveness and Exports in Manufacturing," World Development, Elsevier, vol. 32(8), pages 1323-1339, August. Full references (including those not matched with items on IDEAS)