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

F. Gerard Adams, Byron Gangnes () and Yochanan Shachmurove ()
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Yochanan Shachmurove: City University of New York

No 07-2004, Working Papers from Singapore Management University, School of Economics

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. (search for similar items in EconPapers)
Pages: 34 pages
Date: 2004-03
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Citations: View citations in EconPapers (6)

Published in SMU Economics and Statistics Working Paper Series

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Related works:
Journal Article: Why is China so Competitive? Measuring and Explaining China's Competitiveness (2006)
Working Paper: Why Is China So Competitive? Measuring and Explaining China’s Competitiveness (2004)
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