Wage and price dynamics in a large emerging economy: The case of China

Carsten Holz and Aaron Mehrotra

No 409, BIS Working Papers from Bank for International Settlements

Abstract: This study finds that the growth in labour costs in China is not passed through fully to final prices in China, neither in the tradable goods sector nor in the economy as a whole. This probably reflects the strong pressure on profit margins from a highly competitive environment, especially in manufactured goods. The potential implications of labour cost increases in China for global inflation pressures are also discussed.

Keywords: labour costs; inflation; China; global economic slack; globalisation (search for similar items in EconPapers)
Pages: 22 pages
Date: 2013-04
New Economics Papers: this item is included in nep-dev and nep-tra
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Citations: View citations in EconPapers (16)

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Related works:
Working Paper: Wage and price dynamics in a large emerging economy: The case of China (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:409

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