Wage and Price Dynamics in a Large Emerging Economy: The Case of China
22 Pages Posted: 12 Apr 2013
Date Written: April 2013
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 omma separated
JEL Classification: E31, F42, J30
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