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Why Is China So Competitive? Measuring and Explaining China’s Competitiveness

Author

Listed:
  • F. Gerard Adams

    (Department of Economics, Northeastern University)

  • Byron Gangnes

    (Department of Economics, University of Hawaii at Manoa)

  • Yochanan Shachmurove

    (City University of New York)

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.

Suggested Citation

  • F. Gerard Adams & Byron Gangnes & Yochanan Shachmurove, 2004. "Why Is China So Competitive? Measuring and Explaining China’s Competitiveness," Working Papers 200406, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:200406
    Note: Also Singapore Management University Economics and Statistics Working Paper 07-2004, March 2004
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_04-6.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    China exports; comparative advantage; competitiveness; purchasing power parity; exchange rate; undervaluation; international comparisons; foreign direct investment; joint ventures;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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