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Chinese Manufacturing Performance from Multilateral Perspective: 1980-2004

  • Ruoen Ren
  • Haitao Zheng

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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File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2006/pdf/D06-170.pdf
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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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