Publication Type

Working Paper

Version

publishedVersion

Publication Date

3-2004

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.

Keywords

China exports, comparative advantage, competitiveness, purchasing power parity, exchange rate, undervaluation, international comparisons, foreign direct investment, joint ventures

Discipline

Asian Studies | Economics | International Economics

Research Areas

Applied Microeconomics

Volume

07-2004

First Page

1

Last Page

33

Publisher

SMU Economics and Statistics Working Paper Series, No. 07-2004

City or Country

Singapore

Copyright Owner and License

Authors

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